Costs Incurred in Detecting Which of the Individual Units Do

question 225

Multiple Choice

Costs incurred in detecting which of the individual units do not conform to specifications are called

• A)correction costs.
• B)external failure costs.
• C)internal failure costs.
• D)prevention costs.
• E)appraisal costs.

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Definitions:

Process Innovation

The development and use of new or improved production or distribution methods.

Total Product Curve

A graphical representation showing how the total quantity of output produced by a firm varies with the quantity of a single variable input, holding other inputs constant.

Average Total Cost Curve

A graph that represents the total cost of production (fixed and variable costs combined) divided by the quantity of output produced, at various levels of output.

Diffusion

The spread of an innovation through its widespread imitation.