From the Above Schedule, Calculate The

question 84

Short Answer

From the above schedule, calculate the:
(a) prevention
(b) appraisal costs.

---

Definitions:

One-Year

A period of time consisting of 12 consecutive months.

Sunk Cost

A cost that has already been incurred and cannot be recovered.

Contribution Format

An income statement format that separates fixed and variable costs, showing contribution margin which is sales revenue minus variable costs.

Contribution Margin

The amount by which sales revenue exceeds variable costs of production, indicating how much contributes to covering fixed costs.