Which of the Following Cost of Quality Categories Represent the Cost

question 223

Multiple Choice

Which of the following cost of quality categories represent the cost incurred to rework a product after the company detects a poor-quality product before the company delivers the product to a consumer?

• A)Lean production
• B)Value added activity
• C)Internal failure costs
• D)External failure costs

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Definitions:

Partially Destroyed

Refers to property or goods that have been damaged but not completely ruined, retaining some value or use.

Contract Price

The price agreed upon by the contracting parties as the amount to be paid for the fulfillment of the contract obligations.

Equitable Warranties

Legal promises implied by law that ensure fairness and the truthful disclosure of important information typically in property transactions.

Due-on-sale Warranties

Clauses within a mortgage agreement that require the full loan amount to be repaid if the property is sold.