Closing entry of expense accounts will be $12,300
All the expenses incurred by the company on the vehicle will be included in the expense account. and the expenses which will be counted as asset expenses will be adding all the costs except the insurance cost, as it not considered as an asset.
You must debit the revenue summary account as well as credit each service charge expense stated in the trial balance in attempt to eliminate out overall expense accounts by bringing their balances down to zero. You must list each closing expense exactly as it appears in the trial balance.
Close the companies are leveraging on the income statement that has debit balance to a special transitory account held "income summary."
Close any financial statement accounts having debit balances to the revenue summary account (usually expense accounts).
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Assignment for Business Research Methods Course
The following case is a hypothetical story developed just for this assignment purpose. Ato Thomas, the CEO Debonaire Co, is concerned about the declining employees’ performance that he has seen in the last performance appraisal. He understood that it is time that some action has to be taken to reinvigorate the motivation of employees. He is then considering introducing a new compensation scheme that consists of a 100% pay rise. To approve the pay rise proposal, the board of directors inquired that they would like to get strong evidence as to how the employees would respond to it. Ato Thomas is certain on one thing and was able to convince the board that motivation is one important element that could determine the performance of employees in the company and which he wants to primarily boost through the new compensation scheme. However, he is not certain to tell the possible consequence of the pay rise on employees’ motivation. Most of the exiting theories in this area indicate that financial reward can only sustain the existing level of motivation but do not guarantee improvement in motivation. Several empirical studies reveal conflicting result as to what impact financial benefits could have on employees’ motivation. Moreover, the relative importance of compensation compared to other factors such as job design, supervision, work relation, working condition is unknown. Some studies have shown that all of these factors are equally responsible for motivation while others have resulted conflicting findings. Assume that you are working as a researcher in the research and development department of the company and the management of the company gave you the assignment to conduct a study in private companies in Addis Ababa and come up with empirical evidence (just in six month time) about the impact that the new compensation scheme would bring to employees’ motivation, then
a. Do you suggest explorative, descriptive or explanatory study? Why?
b. Do you think this study is deductive or inductive study? Why?
c. Do you suggest longitudinal or cross-sectional or panel study? Why
d. Do you think this study should be qualitative or quantitative research? Why?
e. Determine whether this study is basic study or applied study? Why
f. Determine whether survey, experiment, observation or a combination of these is appropriate of this study? Discuss why?
g. Which of philosophical perspectives of research do you assume for this study? Why?
h. Write the problem statement?
i. Identify variables (both dependent and independent variables. Determine the dimensions to be used if the analysis is at construct level
j. Identify the hypotheses or research questions?
k. Suggest a conceptual framework to be used in this study ?
l. Determine the appropriate scale of measurement for each of the variables or dimensions of construct?
m. Determine the appropriate source of data and collection instruments, suggest the type of questionnaire you think is appropriate to address the variables/constructs (if you think questionnaire is appropriate)
n. Determine whom you would ask these questions to or which official document you would consult. Describe how would you administer questionnaires?
o. Is sampling necessary? If so, what sampling technique would you use?
p. Suggest data analysis techniques appropriate to this study considering your variables and scale of measurement?
One of the most popular ways to collect data, particularly when conducting business research, is through survey research. Online polls, surveys, questionnaires, and other survey formats are used to pose a variety of survey questions to a group of audiences.
What is the impact of Business Research Methods Course?In this course, applied problem-solving is stressed as an introduction to conducting business research.
Businesses can better understand their consumers' purchasing habits, preferences, and pain points by conducting business research.
Therefore, It places a lot of emphasis on communication skills, issue identification and analysis, and problem-solving techniques.
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1. Discuss the FIVE (5) responses of the price elasticity of demand. (5M)
Answer:
Perfectly elastic, perfectly inelastic, relatively elastic, relatively inelastic, and unitary elastic demand.
Explanation:
The FIVE (5) responses to the price elasticity of demand are:
1. Perfectly Elastic Demand:
When a small change in the price of a product causes a major change in its demand, it is said to be perfectly elastic demand.
2. Perfectly Inelastic Demand:
A perfectly inelastic demand is one when there is no change produced in the demand for a product with a change in its price.
3. Relatively Elastic Demand:
Relatively elastic demand refers to the demand when the proportionate change produced in demand is greater than the proportionate change in the price of a product.
4. Relatively Inelastic Demand:
Relatively inelastic demand is one when the percentage change produced in demand is less than the percentage change in the price of a product. price of a product.
5. Unitary Elastic Demand:
When the proportionate change in demand produces the same change in the price of the product, the demand is referred as unitary elastic demand.
Which of these is NOT one of the four pillars of a presentation?
Question 3 options:
research
organization
delivery
persuasion
Among these four, organization is not the pillar of the presentation.
The four options which are given in the ques are research, organisation, delivery and persuasion.
1) Research: research is a very important aspect of the presentation. Before presenting any topic, there is a need of doing the research on that topic so that the presenter knows each and every aspect of that topic and can give good presentation.
2) Delivery: Next aspect is delivery which means how the presenter delivers his presentation. It is important that he delivers his thoughts and opinions what he actually wantes to share.
3) Persuasion: It is very important that the presenter is able to convince and influence the audience through his thoughts, ideas, etc.
Thus, these 3 aspects are very important in the presentation and the left option i.e. organisation is not the pillar of presentation.
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Answer: delivery
Explanation:
A sum of $2000 is spill between 2 investments, one paying 7% and the other 8%. If the return on the 8% investments exceeds that on the 7% investments by $40. How much is invested at each rate?
The amount invested in the investment that earns 8% interest is $1200.
The amount invested in the investment that earns 7% interest is $800.
How much was invested at each rate?The first step is to form a system of equations using the information provided in the question:
a + b = 2000 equation 1
0.08a - 0.07b = 40 equation 2
Where:
a = amount invested in the investment that earns 8% interest b = amount invested in the investment that earns 7% interestThe system of equations would be solved using the elimination method.
In order to determine the value of b, taking the following steps:
Multiply equation 1 by 0.08
0.08a + 0.08b = 160 equation 3
Subtract equation 2 from equation 3
0.15b = 120
Divide both sides of the equation by 0.15
b = 120 / 0.15
b = $800
Substitute for b in equation 1:
a + $800 = $2000
a = $2000 - $800
a = $1,200
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4. What steps do you think can be taken to help minimize or mitigate these types of moral licensing effects among green consumers? Explain.
The steps that can be taken to help minimize or mitigate these types of moral licensing effects among green consumer include:
Honestly assess your needs and resources.Establish a strong foundation.Build a culture of integrityWhat is moral licensing?Moral licensing is defined as "people's perception that they are permitted to engage in socially undesirable or morally questionable behavior because of a history of moral behavior." For example, moral licensing suggests that purchasing a green product (a positive moral act) increases the likelihood of later purchasing a luxury product (a self-indulgent act).
A green consumer is someone who understands his or her responsibility to protect the environment by purchasing green products or services. A green consumer strives to live a healthy and safe lifestyle without jeopardizing the planet's sustainability or humanity's future.
When you are about to engage in bad behavior or deviate from good, take a moment to apply the 2-second rule. A brief pause of 1 or 2 seconds can disrupt your current train of thought. Instead of labeling your next action as good or bad, consider the goal it will affect. Proceed with your actions if they help the goal. If not, discard.
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Which statement is true about down payments?
A. The smaller the down payment, the lower the interest rate.
B. The smaller the down payment, the lower the principal.
C. The larger the down payment, the higher your monthly payments
will be.
D. The larger the down payment, the lower the principal.
The true statement about down payments is (d) The larger the down payment, the lower the principal.
A large down payment reduces the amount of the mortgage/loan that must be borrowed from the bank. The greater the down payment, the less the buyer will need to borrow to complete the transaction, the lower their monthly payments, and the less interest they will pay in the long run.
The larger your down payment, the less you'll have to borrow and the less interest you'll pay. For example, if you borrow $100,000 with a 5% interest rate, you will pay $5,000 in interest just in the first year. However, if you put down an extra $20,000 and borrow only $80,000, your first-year interest will be $4,000—a $1,000 savings.
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Answer: the larger the down-payment, the lower the principal.
Explanation: I took the test and got it right.
Darby Company, operating at full capacity, sold 500,000 units at a price of $94 per unit during the current year. Its income statement is as follows:
Sales $47,000,000
Cost of goods sold 25,000,000
Gross profit $22,000,000
Expenses:
Selling expenses $4,000,000
Administrative expenses 3,000,000
Total expenses 7,000,000
Income from operations $15,000,000
The total fixed cost, and the total variable costs, given the different costs incurred by Darby Company are:
Total fixed costs = $22,000,000Total variable costs = $10,000,000How to find the fixed and variable costs?The division of the different costs as variable and fixed costs are given in percentages.
The total fixed costs is therefore:
= (Percentage of cost of goods sold that is fixed x Cost of goods sold) + ( Percentage of selling expenses for fixed costs x Selling expenses) + ( Administrative expenses percentage for fixed costs x Administrative expenses)
= (30% x 25,000,000) + ( 25% x 4,000,000) + ( 50% x 3,000,000)
= 7, 500, 000 + 1, 000, 000 + 1, 500, 000
= $10, 000, 0000
The total variable costs are:
= (Percentage of cost of goods sold that is variable x Cost of goods sold) + ( Percentage of selling expenses for variable costs x Selling expenses) + ( Administrative expenses percentage for variable costs x Administrative expenses)
= (70% x 25,000,000) + ( 75% x 4,000,000) + ( 50% x 3,000,000)
= 17, 500, 000 + 3,000,000 + 1, 500, 000
= $22, 000, 000
The question is:
Determine the total variable costs and the total fixed costs for the current year.
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Speech is intended to be any of these:
informative
argumentative
persuasive
entertaining
Please help
Answer: all of the above
Explanation:
speech can accomplish all of what you listed but with certain strategy, some ways can be stronger than others.
Explain the following concepts and state their importance and implications:
scarcity
scale of preference
choice
opportunity cost
Scarcity: means limitation of the avail-ability of reso-urces in relat-ion to their wants. That means the avail-able resources are not eno-ugh to comp-letely satisfy all the wa-nts.
A scale of preference: is a list of goods and services (for exam-ple, shoes, socks, bo-oks, hair-cut, and so on) pre-pared for pur-chase in order of priority. It is a prior-ity rating of all indivi-dual wants, according to their import-ance in one's valuation and the means to achi-eve or obtain them.
Choice: refers to the ab-ility of a consumer or prod-ucer to decide which good, service or re-source to purchase or pro-vide from a range of poss-ible options. Being free to chose is regard-ed as a funda-mental indicator of economic well being and develop-ment.
Opportunity cost: is the va-lue of the best alternative for-gone in making any choice.
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Discuss why teams may have an advantage over individuals in decision making and job performance.
Because teams have specific shared goals, team members usually enjoy greater autonomy, variety, task identity, task significance, and feedback. Teams often enjoy the social support for difficult tasks, improving morale and motivation. Another benefit of teams is to improve product and service quality.
1. Describe the fundamental similarities and differences between procurement, manufacturing support and customer-accommodation performance cycles as they relate to logistical control.
1. Procurement - Buying raw materials at the best price to maximize cost-benefit.
2. Production Support - Requirement analysis, raw material delivery, etc. enhance the manufacturing process. Manufacturing assistance.
3. Market distribution performance cycle - Manages product distribution in the market.
What are the similarities and differences between procurement, manufacturing support, and customer-accommodation performance cycles?Generally, The supply chain process is connected to all aspects of business operations, including procurement, production support, and the performance cycle of market distribution. These are related to one another in a few key respects. They are distinct from one another in the following ways:
1. Procurement is the process of acquiring raw materials at the lowest possible cost while maintaining the highest possible level of operational efficiency.
2. Manufacturing Support - The manufacturing process is helped along by several linked operations such as need analysis, the delivery of raw materials, and so on. The term for this kind of assistance is manufacturing support.
3. The Market Distribution Performance Cycle: It is the Management of the Complete Process of Product Distribution in the Market This cycle is the management of the entire process of product distribution in the market.
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The early majority are more cautious consumers, adopt product after it has proven successful: true or false
Answer:
Explanation: True
effective omnichannel operations need a(n) blank______, which consists of a centralized customer data warehouse that houses a complete history of each customer's interaction with the retailer.
Effective omnichannel operations need a Consumer Relationship Management System, which consists of a centralized customer data complete history of each customer's interaction with the retailer.
Customer relationship management (CRM) is a company approach that boosts customer happiness and loyalty while optimizing revenue and profitability. CRM tools make it possible to discover and manage client interactions both physically and online. CRM software gives businesses in the four sectors of sales, marketing, customer support, and digital commerce capability.
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Project: Facial Feedback Theory Conduct a study to observe facial feedback theory. please I really need help
The facial feedback hypothesis proposes that people's subjective emotional experiences are influenced by their facial expressions. However, the evidence for this hypothesis is mixed.
According to the facial feedback hypothesis, people's emotional experiences are influenced by their facial expressions. Smiling, for example, should make people feel happier, while frowning should make them feel sadder. According to the researchers, these effects occur because facial expressions provide sensorimotor feedback that contributes to the sensation of an emotion, serves as a cue that individuals use to make sense of ongoing emotional feelings, influences other emotion-related bodily responses, and/or influences the processing of emotional stimuli.
The facial feedback hypothesis as well as the original pen-in-mouth effect are both correct. If this is the case, scientists must figure out why others were unable to replicate the pen-in-mouth effect. One theory is that the replicators did not perform a true direct replication because they deviated from the original study by recording the participants openly (per the advice of an expert reviewer).
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Answer: My project is attached for anyone who might still need it
Explanation: Hope this helps! Good luck!
You live in a ski resort town. Real estate prices typically drop 20% during spring and
summer. A house sold for $350,000 in January. What would it sell for in July?
You live in a ski resort to-wn. Real estate prices typic-ally drop 20 % during spring and sum-mer. A house sold for $350,000 in Jan-uary. It would sell for $280,000 in July.
$350,000 * 20 % = $280,000
What is Real Estate ?Real estate is defin-ed as the land and any perm-anent structures, like a home, or improve-ments attached to the land, whe-ther natural or man made.
Real estate is a form of real pro-perty. It differs from per-sonal property , which is not perm-anently attached to the land, such as vehi-cles, boats, jewelry, furniture, and farm equip-ment .
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what is the break even point?
Explanation & Answer:
To put it in simple terms, the break even point is the point at which total cost and total revenue are equivalent.
A 90-day, 10% note for $9,000, dated april 15, is received from a customer on account. the face value of the note is?
a. $9,000.
b. $9,900.
c. $9,225.
d. $8,100.
The face value of a 90-day 10% note for
$9,000, dated April 15 is $9,000.
Bonds often have a face value that
corresponds to their principal or redemption
value. A percentage of face value is used to
calculate interest payments. Depending on
the interest rate payable and the perceived
risk of default, a bond's true value before to
maturity may be larger or lower than its face
value. Bonds' actual value approaches face
value as they get closer to maturity.The per value of the stock is the face value in the case of stock certificates. The per value of the common stock is primarily symbolic. Dividends on preferred stock can be calculated as a percentage of par value.
The death benefit of a life insurance policy
is its face value. In the event that a life
insurance policy has "double indemnity," the
recipient receives double the face value in
case of accidental death.
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Due to the financial crisis of 2007–2008, many new laws were passed that added more layers of oversight and regulation to the banking industry. Smaller community banks have become concerned with the newly imposed regulations by the federal regulators on their bank. What is the best action the bank could take to alleviate this situation?
Apply for a charter conversion from a federally-chartered bank to a credit union.
Refuse to implement recommended changes made by the regulators.
Apply for a charter conversion from a state-chartered bank to a federally-chartered bank.
Do nothing; unfortunately, a bank has no recourse when it comes to regulations.
As smaller community banks became concerned with the newly imposed regulations by the federal regulators on their bank, an action that the bank could take to alleviate this situation is to apply for a charter conversion from a federally-chartered bank to a credit union. The Option A is correct.
What caused the financial crisis of 2007–2008?The financial crisis was also called subprime mortgage crisis, which referred to the severe contraction of liquidity in global financial markets that originated in the United States as a result of the collapse of the U.S. housing market. Its began with cheap credit and lax lending standards that fueled a housing bubble and when bubble burst, the banks were left holding trillions of dollars of worthless investments in subprime mortgages.
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Centerville wants to build a new sports complex near the center of town. The complex will cost $250,000. There are two financing proposals:
Proposal A Issue $250,000 worth of bonds at an interest rate of 4 percent. The town will pay $10,000 per year in interest for 15 years. The total interest would be $150,000. The amount borrowed ($250,000) would have to be paid off in 15 years. Fees charged to users of the complex would pay the interest each year and the amount due bondholders ($250,000). Construction could begin right away.
Proposal B Establish a 1/4 percent city sales tax on all purchases. The revenue needed could be raised in about five years. There would be no user fee charged to residents of Centerville. Construction would be delayed for a few years.
What are the advantages and disadvantages of the two proposals?
Which proposal do you favor, and why?
The advantage of Proposal A is that the project will come to completion in time and the usage will be immediate while Proposal B, on the other hand, will ease the burden of the members of the community and a reduced tax on all purchase and it will be user friendly in terms of fee charged.
However, Proposal A is disadvantageous in the sense that the burden on the user is high, the total money expended would have been more than the money used for the project at the time of completion if payment. Also, Proposal B could also result the project to a nought as the time taken may jeopardize the interest of the people and thereby making it an abandoned project.
However, one would still prefer Proposal A as it will bring about quick completion in time and if effectively used, it will make the total money spent in time and even more.
What is a Proposal?A proposal is a plan or organized scheme or an idea, usually a formal or written one, which is prepared for an individual, group, company or organization to think about and decide upon on a particular project.
Therefore, the correct answer is as given above
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What would be the best title for the chart?
???
the right to safety
the right to be informed
the right to choose freely
the right to be heard
the right to satisfy basic needs
the right to redress
the right to consumer education
the right to a healthy environment
It can be inferred that the best title for the chart showing the following rights is the "Consumer Bill of Rights."
What does the consumer bill of rights state?
The Consumer Bill of Rights protects consumers. Consumers have the right to be informed, the right to select, the right to safety, the right to be heard, the right to have problems remedied, the right to consumer education, and the right to service, according to the bill.
It covers four fundamental consumer rights. Safety, information, a diverse range of goods and services at reasonable costs, and a fair hearing on consumer policy by the government
President Kennedy articulated what he referred to as the Consumer Bill of Rights. According to the law, everyone has four fundamental consumer rights: the right to be informed, the right to choice, the right to safety, and the freedom to be heard.
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Which of the following is relevant information in a decision whether old equipment presently being used should be replaced by new equipment?
a) The cost savings if the new equipment is purchased
b) The book value of the old equipment
c) The salvage value of the old equipment
d) The cash price of the new equipment
C) The old equipment's salvage value
The estimated value of an asset after its useful life has expired and it cannot be used for its original purpose is known as its salvage value or scrap value. For instance, the salvage value of a piece of business machinery is $5000 if, after five years, its value is only $5000.
How is the equipment's salvage value determined?
The salvage value of an asset can be determined by subtracting the initial purchase price from the amount of accumulated depreciation.
Value of Salvage After Tax: The price a good is sold for becomes income on the statement and is subject to taxation. The value or amount that remains after deducting the tax is referred to as the "after-tax salvage value."
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How frequently can you request and receive a free credit report from each bureau?
Each of the three major consumer reporting agencies is required to provide you with a free credit report every 12 months.
What does the term "credit report" mean?
A credit report is a statement that contains details on your credit history and present financial situation, including information on how well you've paid your debts and the status of your credit accounts. The majority of people have multiple credit reports.How do credit reports work?
Your credit reports contain information about the many kinds of credit accounts you've had, your payment history, and a few other things, such your credit limitations. reports on a person's credit from the three consumer reporting agencies in the countryLearn more about credit reports
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1. Do you think the United States is ethically required to respond to epidemics and other health crises in foreign countries? Why or why not?
Answer:
yes it is because United States has always been a health crises foreign country
buyer who has the right to purchase a property at a preset price and terms for a period of time
a. Option
b. Novation
c. Bilateral contract
d. Deed
Buyer who has the right to purchase a property at a preset price and terms for period of time "option.
Option is a contract that gives the buyer the right to purchase a property at a preset price and terms for a period of time.
A option contract is a one-of-a-kind agreement between the seller and the buyer. In this agreement, the seller gives the buyer the option to purchase property at a fixed price within a specified time frame.
Therefore, the correct answer will be option (a)
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Where is the license of an affiliate broker displayed?
Answer:
At the principal place of business of the broker.
Explanation:
You are forecasting a discounted cash flow out for five years. What will you find about the terminal year?
Never again will the cash flow be as great as it was in the terminal year. The terminal year's cash flow will be identical to that of the first year.
What is a discounted cash flow?The term "discounted cash flow" (DCF) refers to a method of valuation that calculates an investment's value based on its anticipated future cash flows. Using estimates of how much money an investment will make in the future, DCF analysis seeks to evaluate the value of an investment now.
The use of accurate statistics and the fact that a discounted cash flow analysis is more objective than other ways of assessing an investment are its key benefits.
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5. Patrice is creating a report that will contain financial information for each month in the last fiscal year, including
sales, cost of goods sold, fixed costs, variable costs, and scrap costs. This information is quantitative, and he doesn't
want to use a lot of space. What visual aid is best for this?
The best visual aid for creating a report that will contain financial information for each month in the last fiscal year, including sales, cost of goods sold, fixed costs, variable costs, and scrap costs will be a graph.
What is visual aid?Visual aids are visual elements such as graphics, photos, and video clips that are used in addition to audio information. Visual aids are selected according to their purpose of Summarize InformationDescriptive material, such as a movie, slide, or model, is designed to supplement plainly written or spoken information.Mainly visual aids such as charts, maps, models,educational films or film strips.it is the representation of the relationships between data, ideas, information, and concepts that is easy to understand and one of the most important learning strategies. This type of presentation is more effective for understanding and comparing data than a tabular format.Also, it helps to qualify, sort, and present your data in a way that is understandable to a wider audience. Charts allow us to explore of causal relationships between two variables through both time series and frequency distributions. Data from various surveys are charted using symbols such as lines in line charts, bars in bar charts, or slices in pie charts. This visual representation helps clarify, compare, and understand numerical data.to know more about visual representation refer here
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Explain why the scenario below fails to meet the definition of decentralized organizational structure.
You are asked to serve on a committee to plan the annual summer picnic. Your committee decides the menu, the location, and the entertainment. You announce the plans to everyone on Friday. On Monday, when you come to work, you notice the plans have been changed by the company CEO.
Communications have to be issued at least a month in advance, so you could create the excitement and prepare employees to look forward to the picnic. Ensure the communication include the broad agendas, timings and a map to reach the venue.
Send out personal invitations to each employee is necessary. Brand the picnic and display posters and communications around the workplace. Consider creating a special website for the picnic.
Planning well in advanced is necessary. Arranging an office picnic is not just about using the budget and arranging things in accordance to it, its about utilizing the budget to its maximum, where it would benefit the company and employees at large.
Given below are some of the important pointers to note, when arranging an office picnic to ensure a good turnaround.
Picking the right time is essential. One should consider the organization's work schedule, employees vacation schedules. Since the picnic involves other family members and children, after work or on a weekend may be best suited.Selecting the venue that is easy to reach, avoid venues that are too far from the locality, hence reducing time spend in travel. Look for a new location each year.Using a theme for the picnic that would make it more exciting and fun especially when there are family members involved. Could be a circus or a pirate theme.Be specific about inviting immediate family members. You can provide employees with an online form, proving details of which family members would be attending, and could serve as an RSVP to plan and encourage employees to attend the eventCommunications have to be issued at least a month in advance, so you could create the excitement and prepare employees to look forward to the picnic. Ensure the communication include the broad agendas, timings and a map to reach the venue.
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ill give 25 points for it
Which two ways can Customer Service and Support affect sales? (Choose TWO)
Select 2 correct answer(s)
Question 1 options:
Coordinating shipping
Distributing marketing information
Closing the deal with rapid engagement
Increased sales through responsiveness and personalization
More sales through customer evangelists
Two ways by which Customer Service and Support can affect sales are:
Distributing marketing informationIncreased sales through responsiveness and personalizationWhat is the benefit of customer service and support to sales?Customer service and support is very important to businesses because it helps them to deal with their customers which are very important to them making sales and profit. In order words, the work of customer service and support is very important to the profitability of a company.
One way that customer service and support can influence sales is by distributing marketing information. For instance, if a customer has an issue, the customer service rep can refer them to some marketing information. Customer service can also lead to increased sales when they engage in personalization and responsiveness and this makes the customer feel appreciated and thereby likely to patronize a company again.
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Answer:
Did you answer my qustion wrong on purpose?
Explanation:
Quality planning and administration, quality training, and quality control procedures are examples of
a. internal failure costs
b. external failure costs
c. appraisal costs
d. prevention costs
e. replacement costs
Quality planning and administration, quality training, and quality control procedures are examples of prevention costs.
Preventive costs are any additional expenses to reduce the number of defects in products and services. A company, for example, could invest in training programs for its production machinery operators to ensure that they understand how to manufacture parts accurately.
Employee training and supplier certification are common prevention costs. Activities that are planned and designed prior to operations to ensure good quality and prevent poor quality products or services.
One of the four components of quality cost is prevention costs. Management focuses primarily on internal and external failure costs when implementing and tracking a cost of a quality system within a company.
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