The Door Company Manufactures Doors

question 10

Multiple Choice

The Door Company manufactures doors.Classify each of the following quality costs as prevention costs, appraisal costs, internal failure costs, or external failure costs.
A) Appraisal
B) Internal failure
C) Prevention
D) External failure
-Data collection problems arise when

• A)Appraisal
• B)Internal failure
• C)Prevention
• D)External failure
• -Data collection problems arise when
• A)data are recorded electronically rather than manually.
• B)accrual-basis costs are used rather than cash-basis costs.
• C)outliers are removed.
• D)purely inflationary price effects are removed.
• E)fixed and variable costs are not separately identified and both are allocated to products on a per unit basis.

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Definitions:

Dividend Revenue

Income received from owning shares of stock in a corporation that pays dividends.

Operating and Financial Affairs

The various activities related to managing a company's day-to-day operations and handling its financial resources.

Investee

A company or entity in which an investor holds a minority ownership stake or interest, but not controlling interest.

Common Stock

A form of corporate equity ownership, a type of security representing an ownership stake in a company, with voting rights and potential for dividends.