Questions
BACC012 Week 11: Practice Quiz
Single choice
Which of the following is an example of an external failure cost?
Options
A.Fines for breach of environmental standards
B.Employee health costs
C.Implementation costs of new technology minimising risk of environmental damage
D.Costs to monitor existing environmental systems in the organisation
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Step-by-Step Analysis
When considering external failure costs, we look at expenses that occur after a product or service has reached the customer or outside the organization due to a failure.
Option 1: 'Fines for breach of environmental standards' fits this category because the organization incurs penalties ext......Login to view full explanationLog in for full answers
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