What Costs Are Incurred When Products and Services Do NOT

question 112

Multiple Choice

What costs are incurred when products and services do NOT conform to either specifications or customer needs prior to being delivered?

• A) appraisal costs
• B) prevention costs
• C) internal failure costs
• D) external failure costs

Recognize the importance of environmental factors and community infrastructure in disease prevention.

Understand the historical development of public health initiatives and their impact on community health.

Analyze the role of government and non-governmental organizations in the advancement of public health.

Identify key figures and their contributions to public health and nursing.

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Definitions:

Direct Labour-Hours

A measure of the amount of time workers spend directly manufacturing a product or providing a service.

Traditional Costing System

A traditional costing system allocates factory overhead to products based on volume-related measures such as direct labor hours or machine hours.

Overhead Cost Per Unit

This is the amount of indirect costs allocated to each unit of production, including costs not directly tied to the production like rent and utilities.

Activity-Based Costing

A costing methodology that assigns costs to products based on the activities required to produce them, aiming to provide more accurate product costing.