The Expenses Associated with the Use of Clean Rooms in the Production

question 53

Multiple Choice

The expenses associated with the use of clean rooms in the production of computer hard drives are ________ costs.

• A)prevention
• B)inspection
• C)internal failure
• D)external failure

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Definitions:

Accounting Equation

The foundational principle of accounting that states assets equal liabilities plus equity.

Accounts Payable

Liabilities representing amounts owed by a company to creditors for purchases of goods and services on credit.

Limited Liability Company (LLC)

A business form consisting of one or more persons or entities filing an operating agreement with a state to conduct business with limited liability to the owners, yet treated as a partnership for tax purposes.

Separate Legal

Refers to a legal entity, such as a corporation, that is legally distinct from its owners.