Among Different Types of Costs Associated with Inventory, Four Categories

question 74

Multiple Choice

Among different types of costs associated with inventory, four categories of quality costs are ________.

• A) control costs, inspection costs, internal failure costs, and external failure costs
• B) prevention costs, inspection costs, internal failure costs, and external failure costs
• C) prevention costs, appraisal costs, internal failure costs, and external failure costs
• D) prevention costs, control costs, internal failure costs, and external failure costs

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Definitions:

Excess Supply

A situation where the quantity of a good or service that is available surpasses the quantity demanded at a current price, often leading to a price decrease.

Value of Money

The purchasing power of money, which can be affected by inflation and economic conditions.

Price Fell

A situation where the market price of a good or service decreases.

Price Level

An index or measurement that reflects the average prices of goods and services in an economy at a given time.