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Managerial Accounting

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Cost of Quality: Sassy Wild Incorporated

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Sassy Wild Incorporated owns and manages a tattoo parlor. Sassy Wild provides unique, custom tattoos personally designed and applied with normal industry standards.

During the application of a tattoo, Sassy Wild's hand slips and she applies the wrong color ink in an area reserved for another. Thinking quickly, she tweaks the design on the fly by shifting the colors slightly so the mistake is hidden.

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.