1.

Which of the following is true of prevention costs?

As prevention costs increase, we would expect the costs of failure to decrease.

As prevention costs decrease, we would expect the costs of external failure to decrease.

As prevention costs increase, we would expect the costs of sustainability reporting to decrease.

As prevention costs increase, we would expect the costs of internal failure to increase.

2.

____ are costs incurred because products or services are produced that do not conform to specifications.

		Control costs
		Failure costs
		Detection costs
		Appraisal costs