Conformance costs
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Conformance costs are the combination of prevention and appraisal costs; the costs incurred to make sure a product or service is not defective and therefore conforms to its intended design.
Definitions
According to Managerial Accounting by Braun, Tietz (5th edition),
- Conformance costs. The combination of prevention and appraisal costs; the costs incurred to make sure a product or service is not defective and therefore conforms to its intended design.
