What Type of Costs Are Scrap and Retesting

question 11

Multiple Choice

What type of costs are scrap and retesting?

• A) cycle failure costs
• B) internal failure costs
• C) external failure costs
• D) unavoidable failure costs

---

Definitions:

Information Processing

The methods by which individuals or systems gather, store, process, and disseminate information.

Bounded Rationality

A concept that individuals make decisions based on the limited information available to them, restricting them from making 'perfect' choices.

Implicit Favorites

The subconscious preference for certain individuals over others, often influencing decision-making and behavior unconsciously.

Decision Structure

The organizational framework that outlines how decisions are made, who makes them, and the processes used to reach conclusions.