Costs that are incurred to find manufactured products, which does not meet specifications are called
A. prevention costs
B. external failure costs
C. appraisal costs
D. internal failure costs
Answer: Option C
Solution(By Examveda Team)
Costs that are incurred to find manufactured products, which does not meet specifications are called appraisal costs. Appraisal costs are a specific category of quality control costs. Companies pay appraisal costs as part of the quality control process to ensure that their products and services meet customer expectations and regulatory requirements. These costs could include expenses for field tests and inspections.Related Questions on Management Accounting
A. resourcing
B. value acquiring
C. production
D. value acquaintance
Examining of past performance, exploring alternative and planning future is
A. learning
B. alternating
C. examining
D. deciding
Time that a company takes to create and produce a new product is classified as
A. management factor
B. time factor
C. customer factor
D. chain factor
Purpose of management accounting is to
A. past orientation
B. help banks make decisions
C. help managers make decisions
D. help investors make decision
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