Question

In: Accounting

If prevention and appraisal costs increase, _____ costs are expected to decrease. a.value- and non-value-added b.process...

If prevention and appraisal costs increase, _____ costs are expected to decrease.

a.value- and non-value-added

b.process improvement

c.both internal and external failure

d.total quality

Costs incurred because products or services fail to meet requirements after delivery to customers are called

a.external failure costs.

b.prevention costs.

c.appraisal costs.

d.internal failure costs.

Costs incurred to determine whether products and services are conforming to requirements are called

a.prevention costs.

b.external failure costs.

c.appraisal costs.

d.internal failure costs.

From the operational content view, a quality product or service is one that meets or exceeds

a.customer expectations.

b.customer satisfaction.

c.company targets.

d.company standards.

Expert Solution

Solution. The correct answer for the first question is option c

Explanation: When prevention and appraisal costs increase to prevent quality related issues and for quality check before the delivery of product or service in pre stage will thereby reduce or decrease both internal and external failure costs after the delivery process to the customers which may lead to dissatisfaction and loss. Other options hold false as option a deals with total cost and cutomer's perception of the product or service, option b deals with optimal use of techniques and processes for cost savings and option d deals with total cost encompassing quality.

The correct answer for the second question is option a

Explanation: Option a holds true as such are incurred because products or services fail to meet requirements after delivery to customers. Option b holds false as such are incurred for prevention of quality related problems. Option c holds false as such are incurred for quality check ahead of delivery. Option d holds false as such are incurred before the delivery process to rectify damages detected before hand.

The correct answer for the third question is option c

Explanation: Option a holds false as such are incurred for prevention of quality related problems. Option b holds false as such are incurred for damages detected after the delivery process by the customers. Option c holds true for the given question as such are incurred for degree of quality conformity. Option d holds false as such are incurred before the delivery process to rectify damages detected before hand.

The correct answer for the fourth question is option a

Explanation: From the operational point of view, a quality product or service is one that meets or exceeds degree of customer's expectations so option a holds true. Other options hold false for the given question.

ekkarill92 answered 1 year ago

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