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Companies Concerned About Quality Production Do Not Treat Waste or Spoiled

Question 65

Multiple Choice

Companies concerned about quality production do not treat waste or spoiled goods as a normal cost of production and remove all waste and spoilage costs from the product cost.Some companies have found that waste or spoilage costs range from


A) 1 to 5 percent of their total product costs.
B) 5 to 10 percent of their total product costs.
C) 10 to 20 percent of their total product costs.
D) 20 to 30 percent of their total product costs.

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