In Activity-Based Management, Which Quality Cost Would NOT Be Considered

question 180

Multiple Choice

In activity-based management, which quality cost would NOT be considered value-added?

• A)internal failure
• B)appraisal
• C)external failure
• D)none of the above

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Definitions:

Supply Of Loanable Funds Curve

A graphical representation showing the relationship between the interest rate and the total amount of savings available for lending in the financial market.

Demand For Loanable Funds Curve

The demand for loanable funds curve illustrates the relationship between the interest rate and the quantity of loanable funds demanded by borrowers, showing how borrowing can decrease as interest rates rise.

Interest Rate

The amount charged by lenders to borrowers for the use of money, expressed as a percentage of the principal, usually on an annual basis.

Loanable Funds

The funds in financial institutions that are available for borrowing.