Which of the Following Categories Includes Costs Incurred When Poor

question 133

Multiple Choice

Which of the following categories includes costs incurred when poor quality goods or services are detected before delivery to customers?

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

---

Definitions:

Nonfinancial Measures

Metrics used to assess performance in areas not directly related to financial outcomes, such as customer satisfaction or employee engagement.

Operating Decisions

Choices made by management regarding the day-to-day operations of a company, which affect its operational efficiency and effectiveness.

Lean Manufacturing

An organized approach to reducing waste in manufacturing systems while maintaining productivity levels.

Raw Materials

Raw materials are the basic, unprocessed inputs used in the manufacturing process to produce finished goods.