To identify defective products,companies incur inspection costs or ________ costs.

Question

Quizplus · Accepted Answer

Inspection costs are also known as appraisal costs, which are incurred to identify defective products before they are shipped to customers. Prevention costs are incurred to prevent defects from occurring in the first place. Internal failure costs are incurred when defects are detected before the product is shipped to the customer, while external failure costs are incurred when defects are detected by the customer after the product has been shipped.

To Identify Defective Products,companies Incur Inspection Costs or ________ Costs