Which of the Following Statements Is Correct

question 29

Multiple Choice

Which of the following statements is correct?

• A) Costs of controlling quality include prevention and appraisal costs.
• B) Costs of failing to control quality include internal and external failure costs.
• C) A and B are both correct.
• D) A and B are both incorrect.

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Definitions:

Negotiable Instrument

A document guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the payer named on the document.

Signature Liability

Liability that is attributed because of a party’s signature on an instrument.

Warranty

(1) An assurance, either express or implied, by one party that the other party can rely on its representations of fact. (2) In sales, a binding promise regarding a product in the event that the product does not meet the manufacturer's or seller's promises.

Proper Tender

The act of presenting an exact amount of money in the appropriate form as payment for a debt or obligation.