Quality Costs Include the Cost of _____________________

question 45

Multiple Choice

Quality costs include the cost of _____________________.

• A)achieving good quality
• B)poor quality
• C)both achieving good quality and generating poor quality
• D)None of these answer choices is correct.

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Definitions:

Investment Center

A business unit within a company that is responsible for its own revenues, expenses, and asset investments, with its performance measured by its ability to generate income relative to its assets.

Minimum Required Return

The lowest acceptable return on an investment, based on risk tolerance and financial goals.

Residual Income

The income that exceeds the minimum required return on investment or capital employed; often used as a performance measure.

Return On Investment

A measure of the profitability of an investment, calculated as the net profit from the investment divided by its initial cost.