Which of the Following Statements About Quality Costs Is True

question 70

Multiple Choice

Which of the following statements about quality costs is true?

• A) Even in theory, external failure costs can never be reduced to zero.
• B) The less a company spends on prevention costs, the less they will have to spend on internal failure costs in the future.
• C) If a company produces and sells a defective product, external failure costs are likely to exceed all the other types of quality costs.
• D) A low level of internal failure costs usually indicates that more attention needs to be paid to prevention and appraisal costs.

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Definitions:

Hybrid Cars

Vehicles that utilize a combination of at least one electric motor along with a gasoline engine to propel the vehicle, offering improved fuel efficiency and reduced emissions compared to conventional vehicles.

Production Possibility Frontier

A graph that shows the highest possible production levels for two different products, using specific resources.

Opportunity Costs

The cost of forgoing the next best alternative when making a decision, representing the potential benefits missed.

Inward

Often used in economics to describe movements towards the center of an economic system, such as inward investment, referring to investment in domestic resources from foreign entities.