The Cost of Training Quality Control Supervisors Who Are Responsible

question 93

Multiple Choice

The cost of training quality control supervisors who are responsible for overseeing the inspection of units would be classified as a(n) ________ cost.

• A)appraisal
• B)prevention
• C)internal failure
• D)external failure

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Definitions:

MR = MC

The condition for profit maximization in economic theory, where marginal revenue (MR) equals marginal cost (MC).

Economic Profit

The discrepancy across total turnover and total spendings, including expenses both explicit and implicit.

Profit Per Unit

The profit earned for each unit of a good or service sold, calculated by subtracting the cost per unit from the selling price per unit.

Monopoly Firm

A single company that possesses exclusive control over the supply of a particular product or service, allowing it to influence price.