Examveda
Examveda

Incurred costs to exclude production of goods, that do not meet specification, are called

A. rework costs

B. prevention costs

C. incremental costs

D. reengineering costs

Answer: Option B

Solution(By Examveda Team)

Incurred costs to exclude production of goods, that do not meet specification, are called prevention costs. Preventive costs are any expenditures incurred that are intended to minimize the number of defects in products and services.

Join The Discussion

Related Questions on Management Accounting