Which of the Following Would Be Classified as an Internal

question 111

Multiple Choice

Which of the following would be classified as an internal failure cost on a quality cost report?

• A) Final product testing and inspection.
• B) Warranty repairs and replacements.
• C) Depreciation of test equipment.
• D) Debugging software errors.

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Definitions:

Income

Financial gains obtained regularly as a result of working or investing.

Imputed Interest Rules

IRS rules that assign a market-rate interest value to certain transactions where no interest or an unrealistic amount of interest is charged.

Personal Residence

A dwelling where an individual lives for the majority of the tax year, which can include a house, apartment, trailer, or boat.

Sale of Property

The act of transferring ownership of real estate or personal property from one party to another for a price.