Which of the Following Would Be Classified as an External

question 36

Multiple Choice

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

• A) Reentering data because of keying errors.
• B) Customer returns arising from quality problems.
• C) Test and inspection of in-process goods.
• D) Rework labor and overhead.

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Definitions:

Forward Contracts

Financial derivatives involving an agreement to buy or sell an asset at a predetermined future date and price.

Commodity Prices

The market prices for raw materials or primary agricultural products that are traded on exchanges.

Exchange Rates

The value of one currency for the purpose of conversion to another, determining how much one currency is worth in terms of another.