What Cost Is the Price of Evaluating Processes and Their

question 48

Multiple Choice

 What cost is the price of evaluating processes and their outputs to ensure that a project is error-free or within an acceptable error range?

• A) prevention cost
• B) appraisal cost
• C) internal failure cost
• D) external failure cost

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Definitions:

Sales Discounts

Reductions in the price sold given by a seller to a buyer, often used as an incentive for early payment or bulk purchases.

Accounts Receivable

Money owed to a company by its customers for goods or services delivered but not yet paid for.

Normal Balance

The side of an account (debit or credit) that is positive or increasing; assets and expenses typically have a debit normal balance, whereas liabilities, equity, and revenues usually have a credit normal balance.