Internal Failure Costs Are Costs Incurred ________

question 103

Multiple Choice

Internal failure costs are costs incurred ________.

• A)to detect poor-quality materials,goods,or services
• B)when the company detects and corrects poor-quality goods or services before delivery to customers
• C)after the company delivers poor-quality goods or services to customers and then has to make things right with the customer
• D)to avoid poor-quality goods or services

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Definitions:

Price And Quantity Variances

The difference between the actual and expected costs, analyzed through the perspectives of price paid and the quantity used.

Standard Costs

Standard costs are the expected costs of manufacturing a product under normal conditions, including direct labor, direct materials, and factory overhead.

Standard Costs

Predetermined or estimated costs used for planning and control purposes in budgeting and cost management.

Stockholders

The owners of a corporation.