Costs Incurred to Detect Poor Quality Goods and Services Refer

question 178

Multiple Choice

Costs incurred to detect poor quality goods and services refer to

• A) appraisal costs.
• B) activity-based costing.
• C) value engineering.
• D) prevention costs.

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Definitions:

Consideration

A value that is promised, given, or received by a party in a contract, making the agreement legally enforceable.

Justifiable Reliance

The reasonable trust placed by one party in the representations of another, particularly in situations leading to contracts or agreements.

Noncontractual Promise

An assurance or pledge not bound by a formal contract and generally not enforceable by law.

Material Misrepresentation

Providing false or misleading information of significant importance, intentionally or accidentally, which can impact contractual agreements or decisions.