Voluntary costs refer to:
A) prevention and appraisal costs.
B) prevention and internal failure costs.
C) appraisal and external failure costs.
D) internal failure costs and external failure costs.

Question

Quizplus · Accepted Answer

Voluntary costs refer to prevention and appraisal costs, which are incurred by an organization to ensure that its products or services meet the required standards and are defect-free. These costs are voluntary in the sense that an organization can choose to incur them or not, depending on its commitment to quality management. Internal and external failure costs, on the other hand, are not voluntary and are incurred when products or services fail to meet the required standards.

Voluntary Costs Refer To