Water Industries' Quality Control Report for August Contains the Following

question 2

Multiple Choice

Water Industries' quality control report for August contains the following items:
$\begin{array}{ll}\text { Gathering, analysis, and reporting quality data}&\$1,000\\\text { Inspecting raw materials received from vendors}&2,000\\\text { Testing and inspecting finished products }&3,000\\\text { Visiting customer sites to test product}&4,000\\\text { Designing product to reduce production problems } & 5,000 \\\text { Repairing and/or replacing products under warranty } & 6,000 \\\text { Maintaining the equipment used to gather quality data } & 7,000 \\\text { Cost (net) of materials wasted during production } & 8,000\end{array}$
-
What would be the total of the prevention costs on the August quality control report for Water Industries?

• A) $5,000.
• B) $7,000.
• C) $11,000.
• D) $15,000.

---

Definitions:

Ordinary Annuity

Harmony of equal contributions at the end of each cycle for a particular duration.

Expressed

Clearly stated, articulated, or otherwise made known in explicit terms.

Years

Units of time measuring 365 or 366 days, used as a standard time period for comparing durations.

Months

Units of time corresponding approximately to one cycle of the moon's phases, used in planning and organizing activities over a period, typically consisting of 30 or 31 days, except for February.