Which Term Below Best Describes the Quality Cost Category for "Cost

question 63

Multiple Choice

Which term below best describes the quality cost category for "cost of testing food processors before sale"?

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

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Definitions:

Excess Reserves

The capital reserves held by a bank or financial institution in excess of what is required by regulators, creditors, or internal controls.

Actual Reserves

The total amount of funds that a bank has on deposit at the Federal Reserve, plus any cash physically held by the bank.

Reserve Requirement

A regulation set by central banks requiring commercial banks to hold a certain proportion of their deposits as reserves.

Government Bonds

Debt securities issued by a government to finance its expenditures, often considered a safe investment.