Which of the Following Would Be Classified as an Internal

question 125

Multiple Choice

Which of the following would be classified as an internal failure cost on a quality cost report?

• A) Supplies used in testing and inspection.
• B) Final product testing and inspection.
• C) Net cost of scrap.
• D) Amortization of test equipment.

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Definitions:

Writes Cheques

The act of creating a written document instructing a bank to pay a specific amount of money from the writer's account.

Cheques Clear

Refers to the process by which a bank verifies that the funds available in the account of the individual who wrote the cheque are sufficient to cover the amount, and subsequently moves those funds to the account of the cheque recipient.

Incremental Bad Debt

Additional losses expected from non-payment or default by borrowers beyond what was originally anticipated.

Bad Debt Losses

Financial losses a company incurs when it cannot collect payment from a borrower or customer.