This is an example of the cost of conformance to quality. 2 is incorrect. The cost of nonconformance is the cost of having to redo the project work, loss of sales, downtime, and other expenses caused by not doing the training. 3 is incorrect. The cost of doing business is usually assigned to regular expenses such as salaries, rent for office space, lights, and so on. Training, especially this type of training, is above and beyond the cost of doing business. 4 is incorrect because the question does not suggest that regulations require this training.