Which of the Following Is an Example of a Cost

question 17

Multiple Choice

Which of the following is an example of a cost item that should be classified as an external failure cost?

• A)Tooling changes
• B)Cost of a lost unit
• C)Warranty claims
• D)Cost to redesign product

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Definitions:

Client-Visits

Instances where a service provider meets with clients at their location or the provider's premises for consultation or business purposes.

Planning Budget

A budget developed at the beginning of the budgeting period that is based on projected levels of activity.

Selling

Expenses incurred directly and indirectly in making sales, including advertising, sales commissions, and the cost of sales personnel.

Administrative Expenses

Overhead or indirect costs related to the general operation of a company, such as office supplies, legal fees, and management salaries.