Warranty Claims, Customer Complaints, and Costs of Litigation Are Examples

question 19

Multiple Choice

Warranty claims, customer complaints, and costs of litigation are examples of __________ costs.

• A) Internal failure
• B) External failure
• C) Appraisal
• D) Prevention
• E) Replacement

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Definitions:

Distributional Justice

The philosophical and theoretical discussions and principles concerning the fair allocation of goods among members of society.

Income Redistribution

The transfer of income from certain individuals or groups to others through mechanisms such as taxation, welfare, and subsidies to achieve economic equity.

Utilitarian Justice

A principle in ethics and political philosophy that actions are right if they are useful or for the benefit of a majority, focusing on outcomes that maximize happiness or reduce suffering.

Dollar Worth

The value of the United States dollar in terms of goods, services, or other currencies.