Which of the Following Would Be Classified as an Internal

question 30

Multiple Choice

Which of the following would be classified as an internal failure cost on a quality cost report?

• A)Supplies used in testing and inspection.
• B)Final product testing and inspection.
• C)Net cost of scrap.
• D)Depreciation of test equipment.

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Definitions:

Labor Productivity

Labor productivity measures the output of goods and services produced per unit of labor input, indicating the efficiency of labor use in the production process.

Economy Size

A measure of the total value of all goods and services produced by an economy over a specified period, typically indicated by GDP.

Labor Force Size

The total number of people, both employed and unemployed, who are willing and able to work in an economy.

Value Added

The increase in worth of a product or service produced at each stage of its production or distribution, reflecting the contribution of labor and capital.