Planning Is a Part of Each Business Activity (Operating, Investing

question 262

True/False

Planning is a part of each business activity (Operating, investing, and financing), and gives each activity meaning and focus.

---

Definitions:

External Failure Cost

Costs incurred when a product fails to meet quality standards after it is delivered to the customer, including returns, repairs, and lost reputation.

Prevention Cost

Costs incurred to prevent defects in products or services, including costs for quality training and process control.

Internal Failure Cost

Costs associated with defects found before the delivery of a product to the customer, including waste, rework, and scrap.

Life Cycle Budget

An estimation of the costs associated with a product or project over its entire lifecycle.