Forensic Specialists Compiled the Following Information for Its First Quarter

question 70

Multiple Choice

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

• A) $420,560.
• B) $31,920.
• C) $117,600.
• D) $175,000.

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Definitions:

Trade Barriers

Measures imposed by governments to restrict or control international trade, often to protect domestic industries.

Sugar

A sweet-tasting soluble carbohydrate obtained primarily from sugarcane and sugar beet, widely used as a sweetener in food and drinks.

Surplus Production

The situation where the quantity of goods produced exceeds the quantity of goods consumed.

Government Policies

Decisions or plans made by a government that influence the behavior of society or sectors of the economy.