Compliance costs include
$\begin{array}{ll}
\underline{\text { prevention costs} } & \underline{ \text {appraisal costs } }&\underline{\text { internal failure costs }} \
\end{array}$

A)yes no no
B)no yes yes
C)yes yes no
D)yes yes yes

Question

Compliance costs include
$\begin{array}{ll}
\underline{\text { prevention costs} } & \underline{ \text {appraisal costs } }&\underline{\text { internal failure costs }} \
\end{array}$

A)yes no no
B)no yes yes
C)yes yes no
D)yes yes yes

Quizplus · Accepted Answer

Compliance costs include prevention costs, which are incurred to prevent non-compliance events from occurring, and appraisal costs, which are incurred to detect any non-compliance events that do occur. However, compliance costs do not include internal failure costs, which are incurred as a result of non-compliance events that have occurred and need to be corrected. Therefore, the correct choice is C.

Compliance Costs Include A)yes No No B)no Yes Yes C)yes Yes No D)yes

Compliance Costs Include A)yes No No
B)no Yes Yes
C)yes Yes No
D)yes