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

question 143

Multiple Choice

Thais Company's quality cost report is to be based on the following data:

-What will be the total prevention cost appearing on the quality cost report?

• A) $84,000.
• B) $92,000.
• C) $98,000.
• D) $113,000.

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Definitions:

Zero Profits

Zero profits, or normal profit, occur when a company's total revenues exactly match total costs, leaving no net profit or loss.

Net Present Value

A financial metric that calculates the difference between the present value of cash inflows and outflows over a period of time.

Interest Rate

The proportion of a loan charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.

Break Even

Break even refers to the point at which total revenues equal total costs, meaning that a business or project is neither losing nor making money.