In the Below Graph,which Shows the Relationship Among Components of Quality

question 149

Multiple Choice

In the below graph,which shows the relationship among components of quality cost,Line "B" depicts:

• A) total quality costs.
• B) external failure quality cost.
• C) voluntary quality costs.
• D) internal failure quality costs.

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Definitions:

Contribution Margin Ratio

The percentage of sales revenue that exceeds variable costs, indicating how much of each sales dollar is available to cover fixed costs and generate profit.

Tile Manufacturer

A company that specializes in producing tiles for floors, walls, and other surfaces.

Operating Leverage

A financial concept that measures the proportion of fixed costs to variable costs in a company's cost structure, affecting profitability with changes in sales volume.

Net Operating Income

The profit generated from a company's core business operations, excluding expenses and revenues from non-operational activities.