- What Will Be the Total Prevention Cost Appearing on based

question 43

Multiple Choice

$\begin{array}{l}\text { Faust Company's quality cost report is to be based on the following data: }\\\begin{array} { | l | r | } \hline \text { Quality engineering } & \$ 68,000 \\\hline \text { Quality circles } & \$ 35,000 \\\hline \text { Supervision of testing and inspection activities } & \$ 72,000 \\\hline \text { Net cost of scrap } & \$ 76,000 \\\hline \text { Test and inspection of in-process goods } & \$ 6,000 \\\hline \text { Liability arising from defective products } & \$ 3,000 \\\hline \text { Warranty repairs and replacements } & \$ 56,000 \\\hline \text { Debugging software errors } & \$ 68,000 \\\hline \text { Rework labour and overhead } & \$ 19,000 \\\hline\end{array}\end{array}$
- What will be the total prevention cost appearing on the quality cost report?

• A) $41,000.
• B) $103,000.
• C) $107,000.
• D) $140,000.

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Definitions:

Canadian Companies

Businesses that are registered, based, or originated in Canada, operating under Canadian laws and regulations.

PEST Analysis

An analytical framework used to assess external factors affecting a business's strategy: Political, Economic, Social, and Technological.

Political Factors

Elements related to government policies, political stability, and legislative changes that can impact an organization's operation and strategic decisions.

International Labour Organization

A United Nations agency that sets international labor standards and promotes rights at work.