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Management · Q46

Management Accounting

Graduate and Post Graduate · Management · question 46

Q46

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

A.
rework costs
B.
prevention costs
Answer
C.
incremental costs
D.
reengineering costs

Answer: Option B

Solution

Answer: Option B
Solution:
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.