Costs Incurred to Prevent Poor Quality in the Products or Services

question 65

Multiple Choice

Costs incurred to prevent poor quality in the products or services being produced are

• A) prevention costs.
• B) appraisal costs.
• C) internal failure costs.
• D) external failure costs.
• E) a different category of quality-related costs.

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Definitions:

Average Cost

The total cost of production divided by the number of goods produced, also known as cost per unit.

Copper

A reddish-brown, malleable, ductile metallic element with high electrical and thermal conductivity, used in many alloys and as electrical conductors.

Zinc

A metallic chemical element with the symbol Zn and atomic number 30, used in alloys and as a protective coating for iron and steel.

Factor Prices

The prices of inputs such as labor, capital, land, and raw materials used in the production of goods or services.