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Activity-based management information can be used in several ways, including managing quality costs. Various quality-related costs are listed below. Indicate whether each cost most likely relates to a(n): (A)prevention activities, (B)appraisal activities, (C)production activities, or (D)post-sales activities.
____ 1. Routine equipment maintenance
____ 2. Finished product testing before shipment
____ 3. Customer satisfaction surveys
____ 4. Costs of spoilage and rework
____ 5. Warranty repairs
____ 6. Incoming raw materials testing
____ 7. Costs incurred to establish supplier qualifications
____ 8. Extra shipping costs incurred to meet customer deadlines
____ 9. Machinery repair costs
____ 10. Salaries of quality control inspectors
Households Or Invested
The concept of how households either consume goods and services for their own use or allocate savings into investments.
Loanable Funds
The funds available within an economy for borrowing, which consist of household savings, business savings, and any government surplus.
Consumption
The process by which goods and services are used up or utilized, reflecting household spending on such goods and services.
Investment Tax Credit
A tax credit offered by the government to encourage businesses to invest in certain assets by allowing them to deduct a portion of the investment cost from their taxes.
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