What costs are incurred to determine whether products and services are conforming to their requirements or customer needs?
A)prevention costs
B)appraisal costs
C)internal failure costs
D)external failure costs

Question

Quizplus · Accepted Answer

Appraisal costs are the costs incurred to determine whether products and services are conforming to their requirements or customer needs. Prevention costs are incurred to prevent defects and errors from occurring in the first place, internal failure costs are incurred when defects are detected before they leave the organization, and external failure costs are incurred when defects are detected after they have left the organization and reached the customer.

What Costs Are Incurred to Determine Whether Products and Services