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

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Definitions:

Fixed Costs

Costs that do not change with the level of output produced, such as rent, salaries, and insurance premiums.

Birthday Cakes

Specialized cakes decorated and made to celebrate a person's birthday.

Boat Tours

Guided excursions on boats or ships designed to provide passengers with leisure, entertainment, and the opportunity to explore waterways and coastal areas.

Fuel

A material that is used to produce energy, especially by combustion, to generate power or as a source of heat.