Which of the Following Would Be Considered as a Prevention

question 6

Multiple Choice

Which of the following would be considered as a prevention cost

• A)Rework costs.
• B)Scrap costs.
• C)Inspection of completed products prior to shipment to customers.
• D)Supplier management.

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Definitions:

Defined Contribution Plan

A type of retirement plan where the amount of the employer's annual contribution is specified, with the final benefits received by the employee depending on the investment's performance.

Ultimate Pension Payments

The total amount of pension payments that will be made to an employee under a defined benefit pension plan over the course of their retirement.

Service Cost

The actuarial present value of benefits earned by employees in the current period under a defined benefit plan, included in pension expense.

Interest Cost

The cost incurred by an entity for borrowing funds, typically reflected as an expense in the income statement.