Costs Incurred to Detect Poor Quality Goods or Services Are

question 66

Multiple Choice

Costs incurred to detect poor quality goods or services are

• A)activity-based costing.
• B)appraisal costs.
• C)value engineering.
• D)prevention costs.

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Definitions:

Selling Price

Selling price is the amount at which a product or service is offered to consumers, calculated to cover costs, overheads, and profit.

Overhead Applied

The allocation of estimated overhead costs to specific jobs or departments based on a predetermined rate or formula.

Assembly Department

A section of a manufacturing facility where components are put together to form final products.

Total Job Cost

The complete cost of a specific job or project, including materials, labor, and overhead costs, calculated for cost tracking and pricing.