Water Industries' Quality Control Report for August Contains the Following

question 72

Multiple Choice

Water Industries' quality control report for August contains the following items.What would be the total of the external failure costs on the August quality control report for Water Industries? $$\begin{array} { | l | c | } \hline \text { Gathering, anabsis, and reporting quality data } & \$ 1,000 \\\hline \text { Inspecting raw materials received fromvendors } & 2,000 \\\hline \text { Testing and inspecting finished products } & 3,000 \\\hline \text { Visiting customer sites to test product } & 4,000 \\\hline \text { Designing product to reduce production problems } & 5,000 \\\hline \begin{array} { l } \text { Repairing andior replacing products under } \\\text { warranty }\end{array} & 6,000 \\\hline \text { Maintaining the equipment used to gather quality } \\\text { data } & 7,000 \\\hline \text { Cost (net) of materials wasted during production } & 8,000 \\\hline\end{array}$$

• A) $4,000.
• B) $6,000.
• C) $7,000.
• D) $14,000.

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Definitions:

Income Taxes

Taxes imposed by governments on the income generated by businesses and individuals within their jurisdiction.

Income Tax Expense

The total amount of income tax a company is obligated to pay to the government, reported as an expense in the income statement.

Income Tax Rate

The percentage at which an individual or corporation is taxed on their income, which can vary based on income level, jurisdiction, and other factors.

After-Tax Discount Rate

A discount rate that has been adjusted for the effect of taxes, utilized in evaluating the net present value (NPV) of an investment after taxes.