A Cost That Is Incurred If Some Aspect of a Service

question 6

Multiple Choice

A cost that is incurred if some aspect of a service must be performed again is called a(n) :

• A) yield loss.
• B) prevention cost.
• C) appraisal cost.
• D) rework cost.

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Definitions:

Partial

Pertaining to something that is not whole or complete, often used in financial contexts to describe payments, completion of tasks, or fulfillment of obligations that are not entirely settled.

Temporary Difference

A difference between the book value of an asset or liability and its tax value that results in taxable or deductible amounts in future years.

Pretax Financial Income

Pretax Financial Income is the amount of income earned by a company before taxes are deducted, as reported in its financial statements.