Which Types of Quality Costs Are Incurred After a Defective

question 74

Multiple Choice

Which types of quality costs are incurred after a defective product is delivered to a customer?

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

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Definitions:

Sales Proportion

The ratio of a particular product's sales to the total sales of all products, often used to analyze the performance or popularity of products.

Multiple Products

The strategy or condition of manufacturing or selling a variety of different products, often to diversify risk or meet various consumer demands.

Operating Leverage Factor

A measure showing the degree to which a company can increase operating income by increasing revenue, emphasizing the fixed to variable costs ratio.

Net Profit

Net profit, also known as net income, is the amount of earnings remaining after all expenses, taxes, and costs have been subtracted from total revenues.