Glory Enterprises quality control report for August contains the following items. Liability costs associated with defective...
Glory Enterprises quality control report for August contains the following items.
| Liability costs associated with defective products | $ | 10,000 | |
| Disposal costs of defective products failing inspection | 20,000 | ||
| Disposal costs of raw materials failing inspection | 30,000 | ||
| Quality training provided to workers | 40,000 | ||
| Lost sales due to poor quality and defective products | 50,000 | ||
| Advertising costs to offset perception of poor product quality | 60,000 | ||
| Raw materials used to correct defects before product was sold | 70,000 | ||
| Testing and inspecting a sample of finished goods | 80,000 | ||
What would be the total of the prevention costs on the August quality control report for Glory Enterprises?
A. $180,000.
B. $120,000.
C. $90,000.
D. $70,000.
Homework Answers
Prevention costs
=
Disposal costs of raw materials failing inspection 30,000
Quality training provided to workers 40,000
= 70,000
Option D is the answer
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