Explicit Costs

question 22

Multiple Choice

Explicit costs:

• A)are the only costs that matter to business owners.
• B)usually exceed implicit costs.
• C)are difficult to measure.
• D)appear on the firm's balance sheet.

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Definitions:

External Failure Cost

Costs associated with defects that are found after the product has been delivered to the customer, including returns, repairs, and warranty claims.

Quality Cost Report

A document detailing the costs associated with preventing, detecting, and correcting defective work, often used in quality control efforts.

Delivery Cycle Time

Delivery cycle time is the total time taken from the receipt of a customer order to the delivery of the product, indicating the efficiency of a company's production and distribution process.

Fill Orders

The process of completing customer orders by preparing and delivering the requested goods or services.