Chapter 5, Problem 2.1CQ

Summary Introduction

To determine:

Different type of cost described in the case along with the trade-off between the cost or quantity that delta made in its decision and whether Mr. GC is correct on his views over conducting more test was unnecessary.

Introduction:

Different costs including, appraisal cost, prevention cost, internal failure cost, and external failure cost. Appraisal cost is also known by the name inspection cost, which is used to examine the product before it is shipped.