Which of the Following Cost Items Should Be Classified as an Internal

question 153

Multiple Choice

Which of the following cost items should be classified as an internal failure cost on a cost of quality report?

• A)Net cost of scrap
• B)Customer returns of defective products
• C)Training for quality control employees
• D)Patent cost for a new product

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Definitions:

Promisee

The person to whom a promise is made or who will benefit from the fulfillment of the promise in a contractual agreement.

Novation

The act of replacing one party or obligation in a contract with another, requiring the agreement of all parties involved.

Assignment

The transfer of rights, property, or obligations from one party to another, a common practice in contracts and financial transactions.

Delegation

The process of assigning responsibility and authority to another person to carry out specific activities.