Which Is Not Defined as a Category of Quality-Related Costs

question 137

Multiple Choice

Which is not defined as a category of quality-related costs?

• A) prevention
• B) appraisal
• C) internal failure
• D) external failure costs
• E) all of these are categories of quality-related costs

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Definitions:

Economic Profit

The difference between the total revenue earned by a business and the total costs (both explicit and implicit) of all resources used.

Market Price

The current market value at which transactions for a service or asset are conducted.

Units

Basic measures or quantities considered as a standard in terms of which other quantities can be expressed.

Economic Profit

Profit calculated by subtracting both explicit and implicit costs from total revenues, capturing the true profitability of a venture.