- What Will Be the Total Appraisal Cost Appearing on based

question 165

Multiple Choice

$\begin{array}{l}\text { Fabri Company's quality cost report is to be based on the following data: }\\\begin{array} { | l | r | } \hline \text { Liability arising from defective products } & \$ 56,000 \\\hline \text { Lost sales due to poor quality } & \$ 51,000 \\\hline \text { Test and inspection of in-process goods } & \$ 47,000 \\\hline \text { Quality circles } & \$ 17,000 \\\hline \text { Net cost of spoilage } & \$ 93,000 \\\hline \text { Debugging software errors } & \$ 29,000 \\\hline \text { Rework labour and overhead } & \$ 95,000 \\\hline \text { Final product testing and inspection } & \$ 32,000 \\\hline \text { Statistical process control activities } & \$ 61,000 \\\hline\end{array}\end{array}$
- What will be the total appraisal cost appearing on the quality cost report?

• A) $79,000.
• B) $127,000.
• C) $140,000.
• D) $157,000.

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Definitions:

Revenue

The total amount of income generated by the sale of goods or services related to a company's primary operations.

Cost Structures

The composition of fixed and variable costs that a company incurs during its operations, impacting its profitability.

Segmented

Divided into separate parts or sections, typically to allow for more targeted approaches or strategies.

Market Types

The classifications of market structures based on the number of sellers, product differentiation, and ease of entry, such as monopoly, oligopoly, and perfect competition.