Which One of the Following Is Part of Prevention Costs

question 189

Multiple Choice

Which one of the following is part of prevention costs?

• A) the costs of quality audits
• B) the costs resulting from scrap
• C) the costs of improving process design and product design
• D) the costs of lawsuits from injury from use of the product

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Definitions:

Cost Accounting Systems

Methods and procedures used for collecting, classifying, summarizing, and analyzing a company's costs to help in budgeting, controlling, and decision-making.

Product Costs

Direct costs associated with the production of goods sold by a company, including direct materials, direct labor, and manufacturing overhead.

Process Cost Accounting System

An accounting system that accumulates costs for each process or department within a production environment.

Continuous Production

A manufacturing process where materials are produced without interruption around the clock.