Machine Downtime Due to Failures in the Process, Scrap, and Rework

question 91

Multiple Choice

Machine downtime due to failures in the process, scrap, and rework are examples of __________ costs.

• A) Internal failure
• B) External failure
• C) Appraisal
• D) Prevention
• E) Replacement

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Definitions:

Retail Method

An accounting method used to estimate inventory value, calculated by adding the cost of goods purchased to the cost of the opening inventory and then subtracting the cost of goods sold.

Estimated Ending Inventory

A projection of the value of goods a company has available for sale at the end of an accounting period, based on calculations or formulas.

Gross Profit Rate

A financial ratio that shows the percentage of revenue that exceeds the cost of goods sold, indicating the efficiency of production and sales.

Emotional Support

The provision of empathy, concern, encouragement, and love to someone, helping them manage stress or challenges.