The Expenses Associated with the Use of Clean Rooms in the Production

question 53

Multiple Choice

The expenses associated with the use of clean rooms in the production of computer hard drives are ________ costs.

• A)prevention
• B)inspection
• C)internal failure
• D)external failure

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Definitions:

Discount

In finance, this is the reduction from the face value of a note, bond, or other financial instrument; in commerce, it refers to a reduction from the regular price.

Journal Entry

A documentation of a financial transaction in which the total debits equal the total credits and is entered into the accounting records.

Times Interest Earned Ratio

A financial ratio that compares a company's operating income to its interest expenses, indicating how well it can cover interest payments with earnings before interest and taxes.