Among different types of costs associated with inventory, four categories of quality costs are ________.
A) control costs, inspection costs, internal failure costs, and external failure costs
B) prevention costs, inspection costs, internal failure costs, and external failure costs
C) prevention costs, appraisal costs, internal failure costs, and external failure costs
D) prevention costs, control costs, internal failure costs, and external failure costs

Question

Quizplus · Accepted Answer

The four categories of quality costs are prevention costs (costs incurred to prevent defects from occurring), appraisal costs (costs incurred to detect defects before they reach customers), internal failure costs (costs incurred due to defects discovered during production or prior to delivery to customers), and external failure costs (costs incurred due to defects discovered after delivery to customers). Control costs and inspection costs are not considered separate categories of quality costs.

Among Different Types of Costs Associated with Inventory, Four Categories