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:

Operating Costs

Expenses associated with running a business's core activities on a day-to-day basis, such as salaries, rent, and utilities.

Discount Rate

The discount rate that is employed during discounted cash flow evaluation to ascertain the present valuation of future expected cash flows.

Simple Rate of Return

A financial metric that calculates the gain or loss of an investment over a specific period as a percentage of the investment's initial cost.

Cash Outflows

Payments or expenditures made by a business or individual, resulting in a decrease in cash balance.