The cost of training employees would be classified as an external failure cost.

Question

Quizplus · Accepted Answer

The cost of training employees would not be classified as an external failure cost, as it does not relate to the costs incurred after a product or service has been delivered to customers and found to be defective. Instead, employee training costs would typically be classified as a prevention cost or an appraisal cost, depending on whether the training is intended to prevent or detect errors in the production or delivery process.

The Cost of Training Employees Would Be Classified as an External