Asked by Abbas Ghaderi on May 29, 2024

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The activity where there is an additional cost incurred by a buying firm as the result of a quality problem is known as:

A) a supplier level activity.
B) an order level activity.
C) a unit level activity.
D) an organisation level activity.

Organisation Level Activity

Activities performed at the organizational level that benefit the entire company, not just specific departments or products.

Quality Problem

Issues or defects in a product or service that fail to meet specified quality standards, potentially leading to customer dissatisfaction.

Additional Cost

Expenses that are not initially planned or expected but arise during the course of a project or business operation.

  • Identify different levels of activities and costs associated with supplier and customer management.
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IH
ibrahim hossenJun 02, 2024
Final Answer :
C
Explanation :
A unit level activity refers to costs or activities that vary with the number of units produced or handled. In the context of a quality problem, additional costs incurred by a buying firm due to issues with the quality of individual units would be considered a unit level activity, as these costs directly relate to the units affected by the quality issue.