Gad Company's quality cost report is to be based on the following data: Re-entering data because of keying errors . Net cost of spoilage. $17,000 $88.000 Supervision of testing and inspection activities . $78,000 Lost sales due to poor quality. Warranty repairs and replacements. $17,000 $92,000 Depreciation of test equipment.. $12,000 Maintenance of test equipment. $75,000

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Q: What is the meaning of margin of safety?

A:

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Q: What is meant by the margin of safety?

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Q: Why would an external user like absorption costing?

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