EXERCISE 2-9 (15 MINUTES)

2. - SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH02 COST TERMS CONCEPT AND CLASSIFICATIONS
SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH02 COST TERMS CONCEPT AND CLASSIFICATIONS

2. Prevention costs and appraisal costs are incurred in an effort to keep

poor quality of conformance from occurring. Internal and external failure

costs are incurred because poor quality of conformance has occurred.