Costs of Inspectors, Testing, Test Equipment, and Labs Are Examples

question 28

Multiple Choice

Costs of inspectors, testing, test equipment, and labs are examples of

• A)internal failure costs.
• B)external failure costs.
• C)appraisal costs.
• D)prevention costs.
• E)replacement costs.

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Definitions:

Assurance of Performance

A guarantee or promise that certain conditions will be met or certain results will be achieved in a contractual agreement.

Repudiated

To reject, refuse to accept, or be associated with, often in relation to a contract or agreement.

Excavation Corporation

A company engaged in the business of removing earth, rock, or other materials from a site to construct buildings, roads, or to mine resources.

Perfect Tender Rule

a legal principle that requires sellers to deliver goods to buyers exactly as specified in their contract, without any deviations.