What Type of Costs Are Incurred to Avoid Poor Quality

question 18

Multiple Choice

What type of costs are incurred to avoid poor quality goods or services in the first place?

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

Calculate and interpret the margin of safety in both dollar terms and as a percentage.

Understand and calculate the degree of operating leverage and its impact on net operating income.

Apply cost-volume-profit (CVP) analysis in mixed cost settings and understand the effect of sales mix changes on break-even points.

Interpret and apply the cost formula equation in the context of business decision-making.

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Definitions:

Group Counselors

Professionals skilled in guiding and supporting a collective group in addressing and overcoming shared psychological challenges or themes.

Guarantee

A formal assurance that certain conditions will be fulfilled, often related to the quality of a product or service.

Rationalization

Rationalization is a defense mechanism in which controversial behaviors or feelings are justified and explained in a seemingly rational or logical manner to avoid the true explanation.

Chronic Use

The long-term, persistent use of a substance or engagement in a behavior, often leading to dependency or addiction.