A Cost That Is Incurred If Some Aspect of a Service

question 6

Multiple Choice

A cost that is incurred if some aspect of a service must be performed again is called a(n) :

• A) yield loss.
• B) prevention cost.
• C) appraisal cost.
• D) rework cost.

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Definitions:

Useful Life

The estimated period that an asset is expected to be useful in the operations of a business.

Operating Condition

Conditions or aspects related to the daily functionality and management of a business's core activities.

Capital Expenditure

Funds used by a company to acquire or upgrade physical assets such as property, plant, or equipment to improve its long-term operations.

Revenue Expenditure

Expenses incurred during the normal course of business operations that are expected to be consumed within the same accounting period.