Error costs can be defined as
A)the costs associated with the measurements required by the cost management system.
B)unit costs assigned based on activities.
C)the costs associated with making poor decisions based on bad cost information.
D)none of these

Question

Quizplus · Accepted Answer

Error costs refer to the costs incurred as a result of making poor decisions based on inaccurate or misleading cost information. These costs can include increased production costs, wasted resources, lost profits, and damage to the organization's reputation. Option A refers to measurement costs, option B refers to activity-based costing, and option D is not the correct answer.

Error Costs Can Be Defined as