- What Will Be the Total Prevention Cost Appearing on based

question 121

Multiple Choice

$\begin{array}{l}\text { Faast Company's quality cost report is to be based on the following data: }\\\begin{array} { | l | r | } \hline \text { Quality engineering } & \$ 86,000 \\\hline \text { Quality circles } & \$ 53,000 \\\hline \text { Supervision of testing and inspection activities } & \$ 92,000 \\\hline \text { Net cost of scrap } & \$ 96,000 \\\hline \text { Test and inspection of in-process goods } & \$ 16,000 \\\hline \text { Liability arising from defective products } & \$ 13,000 \\\hline \text { Warranty repairs and replacements } & \$ 62,000 \\\hline \text { Debugging software errors } & \$ 86,000 \\\hline \text { Rework labour and overhead } & \$ 29,000 \\\hline\end{array}\end{array}$
- What will be the total prevention cost appearing on the quality cost report?

• A) $69,000.
• B) $139,000.
• C) $148,000.
• D) $178,000.

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Definitions:

Commercial Impracticability

A defense in contract law that can release parties from their obligations if an unforeseen event makes the fulfillment of the contract unreasonably difficult or expensive.

Code

A system of principles or rules designed to regulate practices and conduct within a particular activity or sphere.

Restatement

A rephrasing or clarification of a statement or document, often used to clarify legal principles or statutes.

Certificate of Occupancy

A document issued by a local government or building department certifying that a building complies with applicable building codes and other laws, and is safe to occupy.