Which of the Following Would Be Classified as a Prevention

question 14

Multiple Choice

Which of the following would be classified as a prevention cost on a quality cost report?

• A) Cost of field servicing and handling complaints.
• B) Quality engineering.
• C) Lost sales arising from a reputation for poor quality.
• D) Supervision of testing and inspection activities.

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Definitions:

Slope

In mathematics and economics, the measure of the steepness or incline of a line, often interpreted as the rate of change of one variable with respect to another.

Default Risk

The risk that a borrower will not make the required payments on their debt obligations, leading to potential losses for lenders or investors.

Risk-Free Rate

The theoretical rate of return on an investment with zero risk, often represented by the yield on government securities.

Inflation Premium

The additional amount investors require on the return of an investment to compensate for the loss of purchasing power due to inflation.