Which One of the Following Statements Is FALSE

question 60

Multiple Choice

Which one of the following statements is FALSE?

• A) A cause-and-effect diagram is also called a fishbone diagram.
• B) Scrap and rework costs are part of internal failure costs.
• C) Kaizen is the process of specifying design specifications for goods and services.
• D) The Deming Cycle is named after a famous quality guru and consists of four steps-plan, do, study, and act (PDSA).

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Definitions:

Sales Returns

Goods returned by customers to the seller for a refund or credit, often due to defects or dissatisfaction.

Allowances

Amounts deducted from gross revenue or expenses, accounting for items like returns, damaged goods, or discounts.

Operating Cycles

The period it takes for a company to purchase inventory, sell it, and convert the sale into cash.

Financial Statements

Reports that provide an overview of a company's financial condition, including balance sheet, income statement, and cash flow statement.