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Managerial Accounting

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Cost of Quality: Rising Dawn Industries

MGRACT-ZBA8IK

Rising Dawn Industries manages a small emergency medical 9-1-1 and transport service. Rising Dawn's industry of on-demand, on-the-spot emergency medical care places a particular premium on quality of service provided as a mistake or error can, quite literally, cost the life of a customer.

Before every call, Rising Dawn examines all supplies in the ambulance to make sure that the ambulance is fully stocked and that all potential supplies have not expired.

What category of costs of quality governs these activities MOST accurately?

A

Prevention costs.

B

Appraisal costs.

C

Internal failure costs.

D

External failure costs.