External Failure Costs Include All of the Following EXCEPT

question 189

Multiple Choice

External failure costs include all of the following EXCEPT

• A)scrap.
• B)customer support.
• C)liability claims.
• D)transportation costs on repaired products.
• E)warranty costs.

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Definitions:

Accounting Profit

The financial gain calculated by subtracting total explicit costs from total revenue, representing the net income reported on a company's financial statements.

Explicit Costs

Direct, out-of-pocket payments for expenses incurred in conducting business, such as rent, salaries, and materials.

Economic Profits

The disparity between the amount a business earns in total and the sum of its outright and inferred expenses.

Explicit Costs

Direct, out-of-pocket payments for goods and services that are used in the production of other goods and services.