Which One of the Following Is Part of Prevention Costs

question 66

Multiple Choice

Which one of the following is part of prevention costs?

• A) the costs of quality audits
• B) the costs resulting from yield losses
• C) the costs of improving process design and product design
• D) the costs of lawsuits from injury from use of the product

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Definitions:

Unfunded Bond

A bond issued without a specific reserve fund set aside for its repayment, relying solely on the issuer's general creditworthiness.

Callable Bond

A callable bond is a type of bond that gives the issuer the right to pay off the bond before its scheduled maturity date at a predefined call price.

Debenture

A type of debt instrument that is not secured by physical assets or collateral.

Subordinated Bond

A type of bond that has a lower priority than other bonds of the issuer in case of liquidation during bankruptcy.