Cost incurred in the inspection of final products or services is an example of a(n)________.
A)prevention cost
B)appraisal cost
C)internal failure cost
D)external failure cost

Question

Quizplus · Accepted Answer

Inspection of final products or services is a part of appraisal cost, which is the cost incurred to determine the quality of products or services before they are delivered to customers. Prevention costs are incurred to prevent defects or problems from occurring, internal failure costs are incurred when defects are detected before the product or service is delivered to the customer, and external failure costs are incurred when defects are detected by the customer after the product or service has been delivered.

Cost Incurred in the Inspection of Final Products or Services