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:

Loan

Funds lent that must be repaid with an added interest charge.

Ordinary Annuity

A series of equal payments made at regular intervals over a specified period of time, with the first payment made at the end of the period.

End-of-month Deposits

Payments or contributions made into an account, financial product, or investment fund at the conclusion of each month.

Savings Account

a bank account that earns interest and is typically used for holding money not intended for daily expenses.