Which of the following statements is true?

Question

Quizplus · Accepted Answer

Prevention and appraisal costs are usually more desirable than internal failure and external failure costs because they involve preventing defects or identifying them early in the process, which can ultimately save costs and improve product quality. It is not true that prevention costs are less desirable than external failure costs, as preventing defects is generally preferable to dealing with failures after they have occurred. Appraisal costs may not always be significant depending on the industry and company practices. Direct materials costs may or may not be environmental costs, depending on the nature of the materials and how they are used.

Which of the Following Statements Is True