Which of the Following Would Be Classified as an External

question 50

Multiple Choice

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

• A) Depreciation of test equipment.
• B) Test and inspection of in-process goods.
• C) Test and inspection of incoming materials.
• D) Warranty repairs and replacements.

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Definitions:

Liabilities

Obligations in terms of finances that an organization must fulfill to external parties, involving the exchange of economic advantages like funds, goods, or assistance over time.

Accounts Receivable

Money owed to a company by its customers for goods or services provided on credit.

Capital

Represents the amount of funds provided by owners or investors to support business operations.

Owner's Equity

Owner's Equity is the total assets of an entity minus its total liabilities, representing the ownership interest in the company.