The costs incurred in training employees is an example of a(n)________.
A)external failure cost
B)internal failure cost
C)prevention cost
D)appraisal cost

Question

Quizplus · Accepted Answer

The costs incurred in training employees is a prevention cost, which is a cost incurred to prevent defects or problems from occurring in the first place. It is not an external failure cost, which is a cost incurred after a defect or problem has occurred and the product or service must be returned or fixed. It is also not an internal failure cost, which is a cost incurred when a defect or problem is caught before the product or service is delivered to the customer. Finally, it is not an appraisal cost, which is a cost incurred to measure the quality or effectiveness of a product or service.

The Costs Incurred in Training Employees Is an Example of A(n)________