Which of the Following Is Not True of the Costs

question 15

Multiple Choice

Which of the following is not true of the costs of quality?

• A) Prevention costs are costs to prevent poor quality in products or services
• B) Maintenance is a prevention cost
• C) Downtime is an appraisal cost
• D) Inspection is an appraisal cost
• E) Appraisal costs are costs associated with assuring conformance

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Definitions:

Annuity

An annuity is a financial product that pays out a fixed stream of payments to an individual, typically used as an income stream for retirees.

Annual Interest

Annual interest is the amount of interest due over the course of a year on borrowed funds or invested capital.

Contract Rate

The agreed-upon rate specified in a contract for services or lending/borrowing, which could refer to interest rates or payment amounts for contractual services.

Bond

A debt security under which the issuer owes the holder a debt and is obliged to pay interest and/or to repay the principal at a later date.