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Which of the following cost factors are the hardest to quantify? Question 28 options: inspection spoilage...

Which of the following cost factors are the hardest to quantify?

Question 28 options:

inspection

spoilage

loss of goodwill

obsolescence

theft
Engineering   Computer-Science   
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Answer #1

The answer is the loss of goodwill. OPTION C

EXPLANATION:

  • Inspection costs are easily calculatable since we can estimate how much each part of the inspection will take. So, this is wrong.
  • Spoilage costs can also be measured as the (Total availability - used ) = spoilage
  • Obsolescence is the measurement of not being used for a long time or becoming unused. We can calculate and measure how much time it would take to go outdated.
  • Theft is also measurable when we lose something.
  • But, when you lose the goodwill, it will never come back and you can't measure how much you will lose due to the loss of goodwill and trust in you.

Hence, OPTION C is the answer that we can't quantify the loss of goodwill.

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