Which of the Following Would Be Classified as an Internal

question 36

Multiple Choice

Which of the following would be classified as an internal failure cost on a quality cost report?

• A)Cost of field servicing and handling complaints.
• B)Rework labor and overhead.
• C)Supervision of testing and inspection activities.
• D)Final product testing and inspection.

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Definitions:

Federal Income Tax Withholding

Federal income tax withholding is the process by which an employer deducts a portion of an employee's income to pay directly to the federal government as a prepaid credit towards the employee’s annual tax liability.

Contingent Liabilities

Potential obligations that may arise from past events, depending on the outcome of future events.

IFRS

International Financial Reporting Standards, a set of global accounting guidelines that govern how companies prepare and disclose their financial statements.

GAAP

Generally Accepted Accounting Principles; the standard framework of guidelines for financial accounting used in any given jurisdiction.