Which of the Following Would Be Classified as a Prevention

question 83

Multiple Choice

Which of the following would be classified as a prevention cost on a quality cost report?

• A) Supplies used in testing and inspection.
• B) Debugging software errors.
• C) Quality improvement projects.
• D) Lost sales arising from a reputation for poor quality.

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Definitions:

General Ledger

A thorough collection of financial records that documents every financial transaction undertaken by a business.

Adjustments Credit Column

The part of a financial or accounting document where adjustments are made to credits, increasing the value of certain accounts.

Merchandise Inventory

The inventory of products that a retailer plans to sell to customers, accounting for a critical component of its current assets.

Income Summary Account

An account used during the closing process in accounting that summarizes the revenues and expenses of a period to calculate the net income or loss.