________ Costs Are Associated with Preventing Defects Before They Happen

question 164

Short Answer

________ costs are associated with preventing defects before they happen.

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Definitions:

Cash Account

An account that records all transactions involving the exchange of cash.

Debited

An accounting term that refers to an entry on the left side of an account ledger, representing an increase in assets or a decrease in liabilities or equity.

Prepaid Expenses

Expenses paid in advance for benefits to be received in the future, recorded as assets on a balance sheet until used.

Expense

An expense is a cost incurred in the process of generating revenue. Expenses reduce a company's income and are accounted for in the income statement.