Identity the Following by Their Type of Quality Cost

question 38

Multiple Choice

Identity the following by their type of quality cost.
-Returned merchandise

• A)Preventive costs
• B)Appraisal costs
• C)Internal failure costs
• D)External failure costs

---

Definitions:

Exclusive Dealing

An arrangement where a retailer or distributor is restricted to purchasing or selling the products of one supplier.

Wholly Owned

A company or entity that is 100% owned by another company or individual.

Vertical Boycott

An anti-competitive practice where companies at different supply chain levels agree not to deal with a particular company or group.

Sherman Act

A landmark federal statute in the anti-trust law of the United States that prohibits monopolistic practices and promotes competition.