Which of the Following Would NOT Be Considered a Failure

question 21

Multiple Choice

Which of the following would NOT be considered a failure cost of quality?

• A) Cost of inspection and testing-after rework has been performed.
• B) Cost of final product testing that occurs at a distribution center.
• C) Cost of reworking a product so that it conforms to specifications.
• D) Costs associated with selling blemished products or factory seconds.

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Definitions:

Monthly Cash Expenses

The total amount of money spent by a business in cash within a month for operational and administrative purposes.

Cash Equivalents

Short-term, highly liquid investments that are readily convertible into known amounts of cash and have original maturities of three months or less.

Financial Statements

Reports that provide an overview of a company's financial condition, including income statement, balance sheet, and cash flow statement.

Petty Cash Fund

A modest cash reserve used for quick payments for assorted trifling expenses.