Which of the Following Is a Cost Incurred When Customers

question 47

Multiple Choice

Which of the following is a cost incurred when customers discover nonconforming products and services at delivery?

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

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Definitions:

Receive Payment

The process of collecting money from a customer to settle an outstanding invoice.

Aging of Accounts Receivable

A method used to categorize the amounts owed by customers based on the length of time an invoice has been outstanding.

Reports Center

The Reports Center is a feature in accounting software that aggregates all financial reports, providing an overview of an entity’s financial health.

Undeposited Funds

An account used in accounting to temporarily hold receipts and cash sales until they can be deposited in the bank, facilitating easier tracking of cash flow.