Cornerstones of Managerial Accounting 4th Edition by Maryanne Mowen, Don Hansen, Dan Heitger

Exercise 76

Suppose that a company is spending $50,000 per year for inspecting, $40,000 for purchasing, and $40,000 for reworking products. A good estimate of nonvalue-added costs would be
A) $110,000.
B) $50,000.
C) $60,000.
D) $90,000.
E) $100,000.