Glory Enterprises Quality Control Report for August Contains the Following

question 115

Multiple Choice

Glory Enterprises quality control report for August contains the following items:
$\begin{array}{ll}\text {Liability costs associated with defective products}&\$10,000\\\text { Disposal costs of defective products failing inspection }&20,000\\\text {Disposal costs of raw materials failing inspection}&30,000\\\text { Quality training provided to workers } & 40,000 \\\text { Lost sales due to poor quality and defective products } & 50,000 \\\text { Advertising costs to offset perception of poor product quality } & 60,000 \\\text { Raw materials used to correct defects before product was sold } & 70,000 \\\text { Testing and inspecting a sample of finished goods } & 80,000\end{array}$
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What would be the total of the appraisal costs on the August quality control report for Glory Enterprises?

• A) $30,000.
• B) $70,000.
• C) $80,000.
• D) $90,000.

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Definitions:

Marginal Utility Per Dollar

The additional satisfaction obtained from spending one more dollar on a good or service.

Marginal Utility

The supplementary value or enjoyment experienced from the consumption of an additional unit of a good or service.

Money Income

Income received in the form of currency or through electronic transfers, as opposed to goods or services.

Products J and K

Imaginary or hypothetical products, potentially used in theoretical examples or economic models.