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:

Buyers and Lessees

Buyers are individuals or entities that purchase goods or property, while lessees are those who obtain the right to use goods or property through a lease agreement.

Uniform Commercial Code

A comprehensive set of laws governing all commercial transactions in the United States, designed to provide consistency in how commerce is conducted across state lines.

Tender of Delivery

The act of offering to deliver goods to a buyer in fulfillment of a contract, usually done in a manner prescribed or agreed upon.

Conforming Goods

Products that meet the specifications and standards outlined in a purchase contract including quality, quantity, and other clearly defined characteristics.