Which Types of Quality Costs Are Incurred to Eliminate Quality

question 93

Multiple Choice

Which types of quality costs are incurred to eliminate quality problems before they occur?

• A) Appraisal (detection) costs
• B) Prevention costs
• C) External failure costs
• D) Internal failure costs

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Definitions:

Corporate Tax Liability

Corporate tax liability is the total amount of tax that a corporation is legally obligated to pay to the government based on its taxable income.

Capital Structure

The mix of a company’s long-term debt, specific short-term debt, common equity, and preferred equity, which determines its financial leverage.

Financial Manager

A professional responsible for managing an organization's financial health by making investment decisions, financing strategies, and managing risks.

Current Earnings

The net income or profit earned by a company during a particular reporting period, excluding any extraordinary items.