A Plan That Lists the Types and Amounts of Operating

question 57

Multiple Choice

A plan that lists the types and amounts of operating expenses expected that are not included in the selling expenses budget is a:

• A) General and administrative expense budget.
• B) Sales budget.
• C) Cash payments budget.
• D) Overhead budget.
• E) Selling expense budget.

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Definitions:

Internal Failure Cost

Costs incurred due to defects in goods or services before they are delivered to the customer, part of quality management expenses.

Quality Cost Report

A financial report detailing the costs associated with ensuring and maintaining the quality of products or services, including prevention, appraisal, and failure costs.

Appraisal Cost

Costs incurred to ensure that a product or service meets quality standards, including testing, inspections, and certifications.

Quality Cost Report

A financial report that details the costs associated with preventing, detecting, and dealing with defects in products.