________ Are Associated with Testing to Ensure That Products Meet

question 69

Multiple Choice

________ are associated with testing to ensure that products meet quality standards.

• A)External failure costs
• B)Inspection costs
• C)Internal failure costs
• D)Prevention costs

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Definitions:

Variable Costing

An accounting method that includes only variable costs—costs that change with production levels—in the calculation of cost of goods sold and excludes fixed costs.

Net Operating Income

The total earnings from a company's operations after deducting operating expenses but before interest and taxes.

Net Operating Income

The profit a company makes after deducting operating expenses from gross profit, not including income and expenses from investments and interest.

Variable Costing

An accounting method that only considers variable costs in determining the cost of products.