Which of the Following Is an Example of the Costs

question 13

Multiple Choice

Which of the following is an example of the costs incurred by a tire company for replacing defective tires?

• A)prevention costs.
• B)appraisal costs.
• C)internal failure costs.
• D)external failure costs.

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Definitions:

Bank Reconciliation

A process used in accounting to ensure the balance of a company's bank account matches its financial records, identifying discrepancies such as outstanding checks or bank errors.

Interest Revenue

The income that an entity earns from its interest-bearing financial assets.

Bank Statement Adjustment

The process of reconciling differences between the balance shown in a company's bookkeeping records and the balance reported on its bank statement.

Recording Error

A mistake in the bookkeeping process, where transactions are inaccurately recorded, leading to discrepancies in financial records.