Multiple Choice
Inspection time for a plant is 20,000 hours per year. The cost of inspection consists of the salaries of four inspectors, totalling $120,000. Inspection also uses supplies costing $6 per inspection hour. The company has a close to zero-defect state and has eliminated the need for any inspection activity. What is the non-value-added cost of inspection per year?
A) $30,000
B) $120,000
C) $240,000
D) $480,000
Correct Answer:
Verified
Correct Answer:
Verified
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