Which of the Following Best Explains 'Prevention Costs

question 27

Multiple Choice

Which of the following best explains 'prevention costs'? 

• A) The cost of preventing errors. 
• B) The cost related to the timely recognition lf errors. 
• C) The costs that result from rectifying mistakes. 
• D) Accreditation costs.

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Definitions:

Compounded Annually

Interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods on a loan or deposit.

Inheritance

Wealth or attributes passed on to heirs upon the death of an individual.

Lump Sum

A lump sum is a single payment of money, as opposed to a series of payments made over time.