If a Company Were to Increase Its Appraisal Costs by Inspecting

question 68

Multiple Choice

If a company were to increase its appraisal costs by inspecting more units as the units are completed, the company's external failure costs

• A) would usually increase.
• B) would usually decrease.
• C) would usually remain the same.
• D) could not be predicted.

---

Definitions:

Pool Products Division

Could represent a specific business segment within a company focused on producing or selling products related to swimming pools and related activities.

Transfer Price

The price at which goods and services are sold between divisions within the same company.

Transfer Price

The price charged for goods or services transferred between departments or subsidiaries of the same company.

Part Y6P

Could refer to a specific component or piece identified by the part number "Y6P"; likely specific to a certain type of machinery, equipment, or product line.