In Order to Reduce Its Overall Quality Costs, a Company

question 12

Multiple Choice

In order to reduce its overall quality costs, a company should focus most of its efforts on:

• A)prevention costs.
• B)appraisal costs.
• C)internal failure costs.
• D)external failure costs.

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Definitions:

Single-Step Income Statement

A form of income statement in which the total of all expenses is deducted from the total of all revenues.

Gross Profit

The difference between sales revenue and the cost of goods sold before deducting overheads, taxes, interest, and depreciation.

Income From Operations

Earnings generated from a company's regular business activities, excluding deductions of interest and tax.

Ending Inventory

Ending inventory refers to the total value of unsold goods that a company holds at the end of an accounting period.