21) Which of the following is one of the four cost categories typically found on a cost of quality report?
A) Development costs
B) Inventory failure costs
C) Marketing costs
D) Prevention costs
22) Which of the following refers to costs incurred in detecting poor quality goods or services?
A) Appraisal costs
B) External failure costs
C) Internal failure costs
D) Prevention costs
23) What costs are incurred to avoid poor quality goods or services in the first place?
A) Appraisal costs
B) External costs
C) Internal failure costs
D) Prevention costs
24) The costs incurred when poor quality goods or services are detected and corrected before delivery to customers are called:
A) appraisal costs.
B) external failure costs.
C) internal failure costs.
D) prevention costs.
25) The cost of inspection at various stages of production is an example of a(n):
A) appraisal cost.
B) prevention cost.
C) internal failure cost.
D) external failure cost.
26) The cost of warranty work is an example of a(n):
A) prevention cost.
B) appraisal cost.
C) internal failure cost.
D) external failure cost.
27) The cost of evaluating potential raw material suppliers is an example of a(n):
A) internal failure cost.
B) prevention cost.
C) external failure cost.
D) appraisal cost.
28) The cost of improved production equipment and production processes is a(n):
A) external failure cost.
B) internal failure cost.
C) prevention cost.
D) appraisal cost.
29) The cost of product liability claims is an example of a(n):
A) appraisal cost.
B) external failure cost.
C) internal failure cost.
D) prevention cost.
30) The lost profits from lost customers are an example of:
A) prevention costs.
B) internal failure costs.
C) appraisal costs.
D) external failure costs.