Jul 14, 2017 · Which of the following is not an example of an. Which of the following is not an example of an external failure cost? Select one: a. warranty claims b. handling complaints c. loss of customer goodwill d. scrap and rework e. price discounts to offset inferior quality. Question 8 Complete The three primary determinants of quality are: Select one: Marked out of 1.00 a. …
Feb 20, 2020 · Reinspection following detection of a defect. D. Production downtime caused by defects. E. Scrap. 81. All of the following are examples of external failure costs except ____. A. warranty costs B. replacement of defective products to customers C. lawsuits D. quality planning E. loss of customers 82.
A) Activity-based costing (ABC) causes less cost distortion because of the relationship among indirect costs, types of product activities, and the extent to which activities are used. B) Companies can refine systems and reduce cost distortion by implementing activity-based costing (ABC) methods. C) Cost distortion results from the way a manager ...
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The costs incurred while building in, or ensuring, quality are called the costs of conformance. Costs of conformance can include activities such as process documentation, training, inspections, and audits. This is money spent to avoid failures.
These costs are referred to as the costs of non-conformance. This is money spent because of failures. Costs of non-conformance can include things such as payments made out on warranties, re-work or scrap, and/or damage to reputation.
In preparing cost estimates for your project, always consider the quality costs: quality costs to build into a project while not building in quality also can cost money.. Some recent examples in the headlines: Toyota, some US egg farms, peanut butter processing plants, etc.