Which Term Listed Below Describes Costs Incurred When the Company

question 3

Multiple Choice

Which term listed below describes costs incurred when the company detects poor quality goods or services before delivery to the customer?

• A) Internal failure costs
• B) Value added activity
• C) Lean production
• D) External failure costs

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Definitions:

Supply

The total amount of a good or service that producers are willing and able to sell at a given price level.

Insurance Copayments

The fixed out-of-pocket amount paid by an insured for covered services, in addition to any insurance-covered portion.

Physician Fees

are the charges or payments required for medical services provided by a doctor or medical specialist.

Malpractice Insurance Premiums

Payments made to insure against claims of negligence or inadequacy by professionals, especially in the medical field.