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A product-quality-related cost incurred in detecting individual products that do not conform to specifications is an example of a(n):

a. prevention cost

b. appraisal cost

c. external failure cost

d. internal failure cost

Accounting Cost Accounting CMA Costing
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Question added by Lesley Lanag CMA CPA , Senior Accountant , Takaful Emarat Insurance (P.S.C)
Date Posted: 2015/03/09
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Chukwudozie Leonard Chinedu
by Chukwudozie Leonard Chinedu , Safety and Security Guard , Fidelity Security Services

The answer is external failure cost

Hani ALQUDAH
by Hani ALQUDAH , Collections Executive , Social Security Corporation

a. prevention cost. this is a cost incurred by quality control in order to avoid defective production.

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