An Inspector at a Shirt Manufacturer Discovered That Over Fifteen

Multiple Choice

An inspector at a shirt manufacturer discovered that over fifteen hundred shirts were manufactured with incorrect buttons.The manufacturer sold the shirts at 70% of the normal price to a retailer who specializes in "factory seconds." The revenue lost by the manufacturer is considered:

A) a prevention cost.
B) an appraisal cost.
C) an internal failure cost.
D) an external failure cost.