1. A discretionary cost is a cost: a. Whose reduction will not impact long-term profitability b. That a firm is legally committed to undertake c. Which has already been expended and cannot be recovered d. That can be curtailed in the short-term 2. Having a high quality of design means that you can design a product that: a. Meets the quality expectations of the customer b. Has minimal warranty costs c. Contains high-quality materials d. Rarely requires rework 3. External failure costs include: a. Product testing costs b. Field service costs c. Process analysis costs d. Scrap costs
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