Which of the Following Would Not Be Classified as an External

question 37

Multiple Choice

Which of the following would not be classified as an external failure cost on a cost of quality report?

• A)customer support representatives.
• B)labor costs to replace recalled brake parts on automobiles.
• C)the cost of a batch of chemicals that was scrapped when too much acid was added.
• D)a coupon for a free meal given to a customer because his steak was too well done.

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Definitions:

High Wages

A level of income that is significantly above the average or minimum wage.

Protectionism

Economic policy of restricting imports from other countries through methods such as tariffs and quotas, intended to protect domestic industries from foreign competition.

Infant Industries

New or emerging industries in a country that are protected by the government through subsidies or tariffs to promote growth.

Foreign Suppliers' Dumping

The practice where a company exports a product at a price lower than the price it normally charges in its own home market, often with the intention to undercut local markets or gain market share.