Among different types of costs associated with inventory,the costs that result when features and characteristics of a product or service are not in conformance with the customer specifications are ________.
A) EOQ estimation costs
B) costs of quality
C) purchasing costs
D) shrinkage costs

Question

Quizplus · Accepted Answer

Costs of quality refer to the costs associated with ensuring that a product or service meets customer specifications and requirements. This includes the cost of preventing defects, inspecting products, conducting quality assurance, and addressing any quality issues that arise. Non-conformance costs are a type of cost of quality that result from products or services not meeting customer specifications, such as customer returns or warranty claims. EOQ estimation costs, purchasing costs, and shrinkage costs are other types of inventory costs that are not related to quality.

Among Different Types of Costs Associated with Inventory,the Costs That