Internal Failure Costs Occur When Poor-Quality Goods or Services Are

question 42

True/False

Internal failure costs occur when poor-quality goods or services are not detected until after delivery to customers.

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Definitions:

ROI

Return on Investment; a performance measure used to evaluate the efficiency of an investment or compare the efficiency of several investments.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity, allowing for more accurate budgeting in variable cost situations.

Sales Commissions

Fees paid to sales employees as a reward for making sales, usually a percentage of the sales amount.

Selling Expenses

Costs incurred directly from the selling of products or services, including advertising, sales commissions, and store maintenance.