Costs Incurred to Detect Poor Quality Goods and Services Refer

question 13

Multiple Choice

Costs incurred to detect poor quality goods and services refer to:

• A)appraisal costs.
• B)activity-based costing.
• C)value engineering.
• D)prevention costs.

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Definitions:

Order Management

The administrative process involved in handling and tracking customer orders from placement through delivery.

Stockouts

Occur when an item is not in stock and cannot be provided to the customer, leading to potential sales loss and customer dissatisfaction.

Order Fill Rate

A metric that measures the percentage of customer or sales orders fulfilled from stock available at the time the order is placed.

Return on Assets (ROA)

A financial ratio that shows how profitable a company is relative to its total assets, indicating how efficient management is at using its assets to generate earnings.