In managing inventory,the costs that result when features and characteristics of a product or service are not in conformance with the specifications are known as:
A)inspection costs.
B)design costs.
C)costs of quality.
D)purchasing costs.

Question

Quizplus · Accepted Answer

These costs are known as costs of quality, which include the expenses incurred due to poor quality products or services, such as rework, scrap, and warranty claims. Inspection costs are the expenses involved in checking the quality of products, while design costs refer to the expenses incurred in designing a product. Purchasing costs are the expenses associated with procuring raw materials and other goods.

In Managing Inventory,the Costs That Result When Features and Characteristics