Cost Incurred in the Inspection of Final Products or Services

question 65

Multiple Choice

Cost incurred in the inspection of final products or services is an example of a(n) ________.

• A)prevention cost
• B)appraisal cost
• C)internal failure cost
• D)external failure cost

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Definitions:

Kinked Demand Curve

The demand curve for the cutthroat oligopolist, which is based on the assumption that competitors will match a price cut, but will not match a price increase.

Collusive Oligopoly

A market condition where a few companies or entities cooperate to restrict competition and control prices for their mutual benefit.

Price Leadership

A situation in which one company, the price leader, sets the price of goods or services within its market and other companies in the sector follow suit.

Sticky Prices

A situation where prices of goods and services are slow to change in response to changes in supply and demand or economic conditions.