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.Related Questions on Management Accounting
A. resourcing
B. value acquiring
C. production
D. value acquaintance
Examining of past performance, exploring alternative and planning future is
A. learning
B. alternating
C. examining
D. deciding
Time that a company takes to create and produce a new product is classified as
A. management factor
B. time factor
C. customer factor
D. chain factor
Purpose of management accounting is to
A. past orientation
B. help banks make decisions
C. help managers make decisions
D. help investors make decision
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