Forensic Specialists Compiled the Following Information for Its First Quarter

question 28

Multiple Choice

Forensic Specialists compiled the following information for its first quarter cost of quality report:
$$\begin{array} { l l } \text { Sales } & \$ 5,600,000 \\\text { Cost of goods sold } & \$ 3,360,000 \\\text { Disposing of scrap } & \$ 235,200 \\\text { Quality training } & \$84,000 \\\text { Inspecting materials on delivery } & \$280,000 \\\text { Performance reviews } & \$ 70,000 \\\text { Resolving customer complaints } & \$ 31,920 \\\text { Certifying suppliers } & \$ 140,000\end{array}$$
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The total cost of prevention activities for Forensic Specialists is:

• A) $294,000.
• B) $224,000.
• C) $459,200.
• D) $504,000.

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Definitions:

Quantum Meruit

A Latin phrase meaning “what one has earned,” used in law to determine the amount to be paid for services rendered when no contract exists or when a contract is unenforceable.

Common Law

A legal system based on custom and court rulings rather than written laws.

Pledge Form

A document or form that is filled out to indicate a commitment to donate a specified amount of money or resources, often used by charities and non-profit organizations.

Charity

An organization set up to provide help and raise money for those in need.