Which of the following expenses is most likely to be an external failure cost?

Question

Quizplus · Accepted Answer

A regulatory fine is a cost incurred as a result of non-compliance with external rules and regulations, which is a characteristic of external failure costs. The other options listed are not necessarily external failure costs - salary expense could be an internal or external cost, quality control expenses are generally considered a prevention cost, and GHG monitoring expenses could be considered an internal or external cost.

Which of the Following Expenses Is Most Likely to Be