Glory Enterprises Quality Control Report for August Contains the Following

question 15

Multiple Choice

Glory Enterprises quality control report for August contains the following items.What would be the total of the nonconformance costs on the August quality control report for Glory Enterprises? $$\begin{array} { | l | c | } \hline \text { Liability costs as sociated with defective products } & \$ 10,000 \\\hline \begin{array} { l } \text { Disposal costs of defective products failing } \\\text { inspection }\end{array} & 20,000 \\\hline \text { Disposal costs of raw materials failing inspec tion } & 30,000 \\\hline \text { Quality training provided to workers } & 40,000 \\\hline \begin{array} { l } \text { Lost sales due to poor quality and detective } \\\text { products }\end{array} & 50,000 \\\hline \begin{array} { l } \text { Advertising costs to offset perception of poor } \\\text { product quality }\end{array} & 60,000 \\\hline \begin{array} { l } \text { Raw materials used to correct detects before } \\\text { product was sold }\end{array} & 70,000 \\\hline \begin{array} { l } \text { Testing and inspecting a sample of finished } \\\text { goods }\end{array} & 80,000 \\\hline\end{array}$$

• A) $120,000.
• B) $150,000.
• C) $180,000.
• D) $210,000.

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Definitions:

Financial Statements

Reports that summarize a company’s financial performance, including the balance sheet, income statement, and cash flow statement.

Auditor's Opinion

A statement issued by an independent auditor reflecting their judgement about the accuracy of a company's financial statements.

Audit

The examination and verification of a company's financial and accounting records and supporting documents by a professional, such as a Certified Public Accountant, to ensure accuracy and compliance with accounting standards and regulations.

SEC Statement

Financial documentation that companies are required to submit to the U.S. Securities and Exchange Commission (SEC) detailing their financial performance.