United Insurance Agency incurred the following activity costs related to service quality.
$ \begin{array}{ll}
\text{Total sales}&\$ 1,000,000\
\text{Costs of quality:}&\
\text { Prevention } & 50,000 \
\text { Appraisal } & 47,000 \
\text { Internal failure } & 36,000 \
\text { External failure } & 64,000
\end{array} $
Costs of conformance total

Question

United Insurance Agency incurred the following activity costs related to service quality. 
$ \begin{array}{ll}
\text{Total sales}&\$ 1,000,000\
\text{Costs of quality:}&\
\text { Prevention } & 50,000 \ 
\text { Appraisal } & 47,000 \ 
\text { Internal failure } & 36,000 \ 
\text { External failure } & 64,000
\end{array} $ 
Costs of conformance total

Quizplus · Accepted Answer

Costs of conformance include prevention and appraisal costs. So, the total costs of conformance are $50,000 + $47,000 = $97,000.

United Insurance Agency Incurred the Following Activity Costs Related to Service