Which of the Following Cost of Quality Categories Represent the Cost

question 67

Multiple Choice

Which of the following cost of quality categories represent the cost incurred to seek and find a new supplier that can provide quality raw materials compared to the low-quality raw materials received from a current supplier?

• A)Prevention costs
• B)Appraisal costs
• C)Internal failure costs
• D)External failure costs

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Definitions:

Overhead Costs

Expenses related to the day-to-day operations of a business that are not directly tied to the creation of a product or service.

Volume Variance

A financial term that represents the difference between the budgeted and actual volume of production, affecting costs and operational efficiency.

Volume Variance

The difference between the budgeted volume of production or sales and the actual volume, affecting revenue or costs.

Fixed Overhead

Costs that remain relatively constant regardless of the level of production or business activity, such as rent, salaries, and utilities.