Glory Enterprises quality control report for August contains the following items:
$\begin{array}{ll}
\text {Liability costs associated with defective products}&\$10,000\
\text { Disposal costs of defective products failing inspection }&20,000\
\text {Disposal costs of raw materials failing inspection}&30,000\
\text { Quality training provided to workers } & 40,000 \
\text { Lost sales due to poor quality and defective products } & 50,000 \
\text { Advertising costs to offset perception of poor product quality } & 60,000 \
\text { Raw materials used to correct defects before product was sold } & 70,000 \
\text { Testing and inspecting a sample of finished goods } & 80,000
\end{array}$
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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.

Question

Quizplus · Accepted Answer

Prevention costs include activities that prevent defects, such as quality training provided to workers ($40,000) and testing and inspecting a sample of finished goods ($80,000). However, only the training cost is a prevention cost, totaling $40,000.

Glory Enterprises Quality Control Report for August Contains the Following