The cost of training personnel is an example of an:
A) appraisal cost.
B) prevention cost.
C) internal failure cost.
D) external failure cost.

Question

Quizplus · Accepted Answer

The cost of training personnel is an example of a prevention cost, which refers to the costs incurred to prevent potential defects or errors from occurring. Training employees can help prevent mistakes or errors, which can save a company money in the long run by avoiding internal and external failure costs (choices C and D). It is not an appraisal cost (choice A), which refers to the costs associated with evaluating a product or service to ensure that it meets customer requirements.

The Cost of Training Personnel Is an Example of An