On a Cost of Quality Report,the Cost of Activities That

question 22

Multiple Choice

On a cost of quality report,the cost of activities that are incurred to preclude the production of a product or the execution of a service that does not conform to its design specifications is classified as a(n) :

• A)prevention cost.
• B)appraisal cost.
• C)internal failure cost.
• D)external failure cost.

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Definitions:

Observable

A characteristic or phenomenon that can be seen, measured, or otherwise detected through empirical methods.

Self-interest

The pursuit of individual advantage or profit, often regarded as a basic economic driving force.

Adam Smith

An 18th-century Scottish economist and philosopher, often considered the father of modern economics, best known for his theory of the invisible hand guiding free markets.

Competitive Markets

Markets where numerous producers and consumers interact, leading to price determination by supply and demand forces.