In activity-based management,which of the following quality costs would be considered value-added?

Question

Quizplus · Accepted Answer

Supplier certification cost would be considered value-added as it ensures that the supplies received are of higher quality, which in turn reduces the internal and external failure costs. Internal failure cost involves the cost incurred due to defects that are discovered before the product is delivered to the customer, whereas external failure cost involves the cost incurred due to defects discovered after the product is delivered to the customer. Appraisal cost involves the cost incurred to detect and prevent defects.

In Activity-Based Management,which of the Following Quality Costs Would Be