Which of the Following Would Be Classified as a Prevention

question 41

Multiple Choice

Which of the following would be classified as a prevention cost on a quality cost report?

• A)Technical support provided to suppliers.
• B)Rework labor and overhead.
• C)Net cost of scrap.
• D)Debugging software errors.

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Definitions:

Total Expenses

The aggregate amount of all costs incurred by a business during a specific period.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity, providing a more useful tool for performance evaluation.

Employee Salaries And Wages

Refers to the total payments made to employees for the work they have done, inclusive of overtime, bonuses, and other compensations.

Flexible Budget

A budget that adjusts or flexes for changes in the volume of activity, providing a more useful tool for performance evaluation than a static budget.