Which of the following is not true about quality costs?
a. Lost sales resulting from quality problems would be classified as external failure costs.
b. If a company is doing a good job in prevention activities, appraisal costs should be minimal.
c. It is generally less expensive if a defective good is shipped to a customer than if the defect is detected prior to shipment.
d. Generally, if a company devotes resources to prevention, its appraisal, internal failure and external failure costs should decline.
c
You might also like to view...
A just-in-time operation seeks to eliminate all product support functions
Indicate whether the statement is true or false
A company loses sales volume because a competitor introduces a better product. This is an example of
A) random risk. B) market risk. C) systematic risk. D) beta risk.
Consolidated net income for a parent and its 80 percent owned subsidiary should be computed by eliminating:
A. all unrealized profit in downstream intercompany inventory sales, and the noncontrolling interest's share of unrealized profit in upstream inventory sales made during the current year. B. the controlling interest's share of unrealized profit in downstream intercompany sales, and the controlling interest's share of unrealized profit in upstream sales made during the current year. C. all unrealized profit in downstream intercompany inventory sales, and unrealized profit in upstream intercompany inventory sales made during the current year. D. all unrealized profit in downstream intercompany sales, and the noncontrolling interest's share of unrealized profit in upstream sales made during the current year.
The time required to drive from New York to New Mexico is a discrete random variable
Indicate whether the statement is true or false