Which of the Following Would Be Classified as a Prevention

question 32

Multiple Choice

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

• A)Quality improvement projects.
• B)Disposal of defective products.
• C)Depreciation of test equipment.
• D)Final product testing and inspection.

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Definitions:

Demand Function

A mathematical equation that describes the relationship between the quantity of a good demanded and its price, along with other factors like income and price of related goods.

Consumer's Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service and the total amount that they actually do pay.

Mead

A fermented beverage made from honey, water, and sometimes various fruits, spices, grains, or hops.

Utility Function

A mathematical representation in economics that shows the relationship between the total utility derived from consuming a good or service and its quantity.