The Largest COQ Items Are Frequently Those Related to External

question 116

True/False

The largest COQ items are frequently those related to external failure,which comprises mainly the opportunity costs of the contribution margin and profit forgone from lost sales,lost production and lower prices resulting from poor quality.

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Definitions:

Express Warranty

A clear, explicit promise made by a seller about the quality or functionality of a product.

Implied Warranty

A legal assumption that a product will meet the standards of acceptability and usability without explicit statement by the seller.

Res Ipsa Loquitur

A doctrine that allows a judge or jury to infer that, more likely than not, the defendant’s negligence was the cause of the plaintiff’s harm even though there is no direct evidence of the defendant’s lack of due care.

Negligence

A failure to behave with the level of care that someone of ordinary prudence would have exercised under the same circumstances.