Rector Corporation is examining its quality control program. Which of the following statements is/ are correct?I. Rework costs should be regarded as a cost of quality when the rework is caused by internal failure. II. Prevention costsare costs that are incurred to prevent the sale and production of defective units. III. Internal failure costs are costs of failureof machinery on the production line.1. I, II, and III are correct.2. II only is correct.3. I and III only are correct.4. I only is correct.
Rector Corporation is examining its quality control program. Which of the following statements is/ are correct?I. Rework costs should be regarded as a cost of quality when the rework is caused by internal failure. II. Prevention costsare costs that are incurred to prevent the sale and production of defective units. III. Internal failure costs are costs of failureof machinery on the production line.1. I, II, and III are correct.2. II only is correct.3. I and III only are correct.4. I only is correct.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Rector Corporation is examining its quality control program. Which of the following statements is/ are correct?
I. Rework costs should be regarded as a cost of quality when the rework is caused by internal failure. II. Prevention costs
are costs that are incurred to prevent the sale and production of defective units. III. Internal failure costs are costs of failure
of machinery on the production line.
1. I, II, and III are correct.
2. II only is correct.
3. I and III only are correct.
4. I only is correct.
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