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Managerial Accounting: The Corners...

7th Edition
Maryanne M. Mowen + 2 others
ISBN: 9781337115773

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BuyFindarrow_forward

Managerial Accounting: The Corners...

7th Edition
Maryanne M. Mowen + 2 others
ISBN: 9781337115773
Textbook Problem
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Identify and discuss the four kinds of quality costs.

To determine

Explain four categories of quality cost.

Explanation

Quality Cost:

Organizations are required to bear costs due to non-conformity of goods or services with the general specifications. These costs are termed as quality costs.

There are four types of quality costs which are listed as follows:

  • Internal costs: These costs that are incurred before goods are delivered. For example, scrap and repairs.
  • External costs: These costs are incurred after goods are delivered...

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