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Managerial Accounting

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Understanding the Cost of Quality

MGRACT-YSIGOQ

Which of the following statements regarding the cost of quality is/are true?

Select ALL that apply.

A

Cost of quality is the cost of a customer service division in an organization.

B

Cost of quality means that the product or service was produced with the highest possible standards for creating the ultimate product.

C

Costs of quality may include reworking a product, testing the product, providing field service, or replacing a product.

D

The cost of quality is the accumulated cost of creating a product that is of insufficient quality.