[The Following Information Applies to the Questions Displayed Below

question 68

Multiple Choice

[The following information applies to the questions displayed below.]
The Abrams Corporation incurred the following quality costs for the year ending December 31,2018:

-What are the total external failure costs for the Abrams Corporation?

• A)$38,300
• B)$34,500
• C)$19,700
• D)$35,250

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Definitions:

Selling Price

The amount charged to the customer for a product or service, determining the revenue generated from sales.

Net Operating Income

A company's revenue minus operating expenses, not including taxes and interest.

Sales Volume

The quantity of units sold within a specified period, crucial for analyzing a company's performance and planning production.

Variable Cost

Costs that vary directly with the level of production or sales volume, such as materials and labor directly involved in creating a product.