Fabrick Company's Quality Cost Report Is to Be Based on the Following

question 87

Multiple Choice

Fabrick Company's quality cost report is to be based on the following data: What would be the total prevention cost appearing on the quality cost report?

• A) $101,000
• B) $72,000
• C) $73,000
• D) $96,000

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Definitions:

Selling Price

The price at which a product or service is sold to customers.

Retained Earnings

The portion of a company's profits that is not distributed as dividends to shareholders but is instead reinvested in the business or kept as a reserve.

Cash Available

The amount of cash that a company or an individual has on hand or can easily access.

Dividends

Payments made by a corporation to its shareholder members, often derived from the company's profits.