Activities Performed Under a Value Chain Approach to Quality Management

question 46

Multiple Choice

Activities performed under a value chain approach to quality management, to insure defect-free production, such as routine equipment maintenance or quality training, represent which category of quality costs?

• A) External activities
• B) Internal activities
• C) Prevention activities
• D) Appraisal activities

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Definitions:

Price Elasticity

The degree to which the demand or supply of a product or service changes in response to a change in price, indicating the sensitivity of consumers or producers to price variations.

Total Expenditure

The aggregate amount spent by consumers on a particular good or service over a specified time period.

Price Elasticity

The quantification of demand elasticity for a product relative to the shifts in its price.

Total Expenditures

The sum total of all spending or expenses incurred by an individual, business, or government.