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- What Will Be the Total Appraisal Cost Appearing on based

question 119

Multiple Choice

$\begin{array}{l}\text { Eade Company's quality cost report is to be based on the following data: }\\\begin{array} { | l | r | } \hline \text { Systems development } & \$ 32,000 \\\hline \text { Final product testing and inspection } & \$ 13,000 \\\hline \text { Quality data gathering, analysis, and reporting } & \$ 11,000 \\\hline \text { Net cost of scrap } & \$ 62,000 \\\hline \text { Returns arising from quality problems } & \$ 59,000 \\\hline \text { Amortization of test equipment } & \$ 57,000 \\\hline \text { Rework labour and overhead } & \$ 18,000 \\\hline \text { Test and inspection of incoming materials } & \$ 40,000 \\\hline \text { Product recalls } & \$ 36,000 \\\hline\end{array}\end{array}$
- What will be the total appraisal cost appearing on the quality cost report?

Understand the tools and techniques of financial analysis, including ratio, horizontal, and vertical analysis.

Understand the concepts of profitability, solvency, and liquidity in financial context.

Identify and apply different standards for financial statement analysis including intra-company, competitor, and industry standards.

Distinguish between unusual and frequent gains and losses in financial reports.

Definitions:

Final Clear Opportunity

A concept in tort law, particularly in negligence, which refers to the last chance a defendant might have had to avoid causing harm to the plaintiff.

Duty

A moral or legal obligation; a responsibility.

Assistance

The act of providing help or support, especially to people in need.

Dive Shop

A retail establishment that sells scuba diving and snorkeling equipment, and often offers dive training and dive trip arrangements.