Spoilage is an example of ________.
A) prevention costs
B) appraisal costs
C) internal failure costs
D) external failure costs

Question

Quizplus · Accepted Answer

Spoilage is a result of internal failure in a manufacturing or production process, and the costs incurred to rectify or dispose of the spoiled goods are classified as internal failure costs. Prevention costs are incurred to prevent defects from occurring in the first place, while appraisal costs are incurred to detect defects. External failure costs are incurred when defective products are shipped to customers and result in warranties or recalls.

Spoilage Is an Example of ________