A significant cost of quality that is not recorded in the accounting records is the
A)failure cost for a customer complaint center.
B)cost of reworking products to bring them up to specification.
C)opportunity costs of forgone future sales.
D)appraisal cost for product equipment.

Question

Quizplus · Accepted Answer

The opportunity costs of forgone future sales refer to the potential revenue that could have been earned if the company had delivered a higher quality product or service. This cost is not recorded in the accounting records, but it still has a significant impact on the overall cost of quality. Failure costs, reworking costs, and appraisal costs are all costs that are typically recorded in the accounting records.

A Significant Cost of Quality That Is Not Recorded in the Accounting