In Its Simplest Form, a T Account Consists of Three

question 110

True/False

In its simplest form, a T account consists of three parts: (1) its title, (2) a left or credit side and (3) a right or debit side.

---

Definitions:

Prevention Costs

Costs that are incurred to keep defects from occurring.

Internal Failure Costs

Costs associated with defects found before the delivery of a product to the customer, including scrap, rework, and downtime.

External Failure Costs

Costs that occur when products fail to meet quality standards after being delivered to customers, including returns, repairs, and warranty claims.

Opportunity Costs

The financial impact of skipping the immediate next favorable choice in the process of making a decision.