Production Loss Caused by Downtime Is an Example of What

question 194

Multiple Choice

Production loss caused by downtime is an example of what type of cost?

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

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Definitions:

Economizing Behavior

The practice of seeking to achieve maximum utility with limited resources, leading to optimal decision making.

Lowest Cost Method

A principle of optimizing operations or production by minimizing the costs involved in the process.

Objectives

Objectives refer to the specific, measurable goals individuals or organizations aim to achieve.

Benefit

An advantage, gain, or positive outcome derived from a specific action, decision, or product.