Which of the Following Would Be Classified as an Appraisal

question 102

Multiple Choice

Which of the following would be classified as an appraisal cost on a quality cost report?

• A) Debugging software errors.
• B) Supplies used in testing and inspection.
• C) Re-entering data because of keying errors.
• D) Warranty repairs and replacements.

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Definitions:

Retained Earnings

The portion of a company's profits that are kept or retained and not paid out as dividends to shareholders, often used for reinvestment in the business, to pay down debt, or to reserve for future use.

Dividends

Disbursements from profits made by a corporation to its shareholders.

Interest Expense

The cost incurred by an entity for borrowed funds, which is considered an operating expense.

Net Capital Spending

This term refers to the total amount a company spends on acquiring or maintaining fixed assets, minus any sales of these assets, over a given period.