Which One of the Following Would Be Considered a Cost

question 3

Multiple Choice

Which one of the following would be considered a cost of nonconformance?

• A) Performing preventive maintenance on analyzers
• B) Employee training
• C) Repeating an analytical run because the QC is out of range
• D) Sending an employee to a fire safety class

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Definitions:

Accumulated Depreciation

Accumulated depreciation represents the total depreciation expense assigned to a fixed asset over its useful life, reducing its book value.

Investments

Assets purchased with the expectation that they will generate income or appreciate in the future.

Owner's Equity

Refers to the residual interest in the assets of a company after deducting liabilities, representing the ownership interest.

Property Plant and Equipment

Durable physical assets that are utilized in running a business and are not meant to be sold.