Which of the Following Is Not an Example of a Prevention

question 44

Multiple Choice

Which of the following is not an example of a prevention cost?

• A) Training employees to improve quality.
• B) Designing products to reduce production problems.
• C) Correcting product defects before they are sold.
• D) Inspecting the production process as it occurs.

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Definitions:

Manufacturing Income Statement

A financial statement showing the income, expenses, and profits of a manufacturing company, highlighting the cost of goods manufactured.

Cost Of Goods Sold

The direct costs related to the production of the goods sold by a company, including materials and labor.

Direct Materials

Costs of raw materials that are directly used in the production of a product, easily traceable to the product being manufactured.

Direct Labor

The labor costs directly associated with the production of goods or services, including wages of workers directly involved in production.