Sanford Corp

question 12

Multiple Choice

Sanford Corp.bought new technological systems to inspect the quality of products as they come off the production line.The expense of operating these systems would be an example of which of the following types of quality-related costs?

• A)Internal failure cost
• B)Appraisal cost
• C)External failure cost
• D)Prevention cost

---

Definitions:

Opportunity Cost

The cost of forgoing the next best alternative when making a decision.

Playing Golf

An outdoor game in which players use clubs to hit a small ball into a series of holes on a course in as few strokes as possible.

Sunny Days

Days characterized by sunshine, with minimal to no cloud cover, often associated with good weather.

Opportunity Cost

The loss of potential gain from other alternatives when one alternative is chosen.