What Type of Costs Are Incurred to Avoid Poor Quality

question 18

Multiple Choice

What type of costs are incurred to avoid poor quality goods or services in the first place?

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

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Definitions:

Experimental Market

A market or test area where new products or services are introduced to measure consumer response and behavior.

Simulated Market

An artificial environment created for research, training, or testing, mirroring real-world market conditions without the economic risks.

Micro Market

A small, specific segment of a market with its own particular needs or preferences.

Trial Market

A test marketing strategy where new products are introduced in a limited area to gauge consumer response before a full-scale launch.