Quality Costs Do Not Include

question 28

Multiple Choice

Quality costs do not include:

• A)Costs to prevent poor quality from occurring.
• B)Costs of appraising and inspecting the product.
• C)Costs to correct problems before the customer receives the goods.
• D)Advertising costs.

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Definitions:

Operating

Pertaining to the day-to-day functioning and management of a business or enterprise, often related to producing or offering goods and services.

Cash Flow

The total amount of money being transferred into and out of a business, affecting the company's liquidity.

Balance Sheet

A balance sheet is a financial statement that reports a company's assets, liabilities, and shareholders' equity at a specific point in time, giving a snapshot of its financial condition.

Statement

A formal document summarizing the financial position or performance of an entity, such as an income statement or balance sheet.