Supplier evaluations are an example of
A)appraisal costs.
B)prevention costs.
C)internal failure costs.
D)design costs.
E)external failure costs.

Question

Quizplus · Accepted Answer

Supplier evaluations are a form of prevention cost which is incurred to prevent quality problems from happening. By evaluating the potential suppliers, the organization can ensure that the supplier will meet the quality requirements before purchasing the goods, which will prevent any quality problems from happening in the future.

Supplier Evaluations Are an Example of