Quality Experts Maintain That Total Quality Costs Should NOT Exceed

question 72

Multiple Choice

Quality experts maintain that total quality costs should NOT exceed

• A) 2 to 4 percent of sales.
• B) 2 to 4 percent of total costs.
• C) 2 to 4 percent of profit.
• D) profit.

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Definitions:

Marginal Social Benefit

The extra advantage that the entire society gains from using an additional unit of a product or service.

Public Good

A product that is non-excludable and non-rivalrous in consumption, meaning it is available to all members of society without depletion.

Nonrival

Refers to a good where one person's use does not reduce the amount available for others.

Nonexcludable

A characteristic of goods where it is difficult or impossible to prevent people from using the good once it has been provided.