Costs Incurred by Defects That Occur Prior to Delivery to the Customer

question 24

Multiple Choice

Costs incurred by defects that occur prior to delivery to the customer are called:

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

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Definitions:

Safeguarding Inventory

Measures and policies implemented to protect company inventory from theft, damage, and other losses.

Physical Devices

Tangible pieces of hardware that are used for specific functions, often within technological or manufacturing settings.

Inventory Turnover

The relationship between the volume of goods sold and inventory, computed by dividing the cost of goods sold by the average inventory.

Purchase Order

An official document issued by a buyer committing to pay the seller for the supply of specific products or services at agreed prices.