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.

---

Definitions:

Retail Method

An accounting method used to estimate inventory value by converting the cost of goods available for sale into retail prices and then calculating ending inventory at retail prices.

Ending Inventory

The total value of goods available for sale at the end of an accounting period, calculated by adding purchases to beginning inventory and subtracting the cost of goods sold.

Weighted Average Periodic Method

An inventory costing method where goods are valued at an average cost, calculated periodically, taking into account the weight of each purchase.

Ending Inventory

The total value of goods available for sale at the end of an accounting period, calculated as the beginning inventory plus purchases minus cost of goods sold (COGS).