The prevention costs and the appraisal costs are costs incurred to avoid the poor quality of conformance. The internal failure costs and the external failure costs are incurred after the poor quality of conformance has occurred. The costs incurred to keep the poor quality of conformance from occurring and the costs incurred because the poor quality of conformance has occurred.

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Chapter 12, Problem 2E

2.

To determine

Introduction:

The prevention costs and the appraisal costs are costs incurred to avoid the poor quality of conformance. The internal failure costs and the external failure costs are incurred after the poor quality of conformance has occurred.

The costs incurred to keep the poor quality of conformance from occurring and the costs incurred because the poor quality of conformance has occurred.

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