Which of the Following Cost Items Should Be Classified as an External

question 116

Multiple Choice

Which of the following cost items should be classified as an external failure cost on a cost of quality report?

• A) Net cost of scrap
• B) Customer returns of defective products
• C) Technical support provided to suppliers
• D) Supplies used in the quality inspection program

Understand the distinction between liability for personal injury and property damage.

Learn the essential elements required to establish an action in strict product liability.

Differentiate between the various basis of liability within product liability, including negligence, strict liability, and misrepresentation.

Comprehend the defenses available in product liability suits, such as product misuse and assumptions of risk.

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Definitions:

Competitors

Other businesses that offer similar products or services within the same market and vie for the same potential customers.

Triple Bottom Line

An accounting framework that incorporates three dimensions of performance: social, environmental, and financial.

Drawbacks

Negative aspects or disadvantages associated with a decision, plan, or product.

Framework

A basic structure underlying a system, concept, or text, often providing a guide or support for building something more complex.