Question 1

Which of the following is most likely to be categorized as an external failure cost?

Accepted Answer

A) the cost of testing a product before shipment 
B) the cost of machinery maintenance to avoid breakdowns during production 
C) the cost of lost future sales after a customer finds a defect in a product 
D) the cost of inspection of materials to be used in production

Question 2

List and briefly discuss three major differences between just-in-time costing (JIT)and traditional costing.

Accepted Answer

The answer of List and briefly discuss three major differences...

Exam 19: Cost Management Systems: Activity-Based, just-In-Time, and Quality Management Systems

Which of the following is most likely to be categorized as an external failure cost?

List and briefly discuss three major differences between just-in-time costing (JIT)and traditional costing.