Why might prevention costs be referred to as an investment while failure costs might be referred to as true costs

Business

1 answer:

sdas [7]3 years ago

4 0

Answer: Prevention cost is used to protect equipments and assets and as such is an investment.

Explanation:

Prevention cost like the name suggests is a cost incurred in the process of keeping a machine or equipment in a working condition to avoid a future breakdown which might lead to a loss in profit for the company. This is why it is referred to as an investment because it is done to prevent the loss of profit due to downtime a breakdow of the machine or equipment would cause.

Failure cost is a true cost because it arises from a loss incurred by the company through production or it capital invested in the business.

You might be interested in

These securities are short-term government securities with maturities ranging from a few days to 52 weeks. They are sold at a di

lesantik [10]

Answer:

They are called T-Bills.

3 0

3 years ago

What are the elements of the tort of negligence??

natali 33 [55]

What are the elements of the tort of negligence??
Answer:*Presence of a Duty of Care. The first element is establishing the presence of a duty owed by one person to another.

*Someone Breached Their Duty. The second element is a breach of the duty owed by one person to another.

*The Breach Directly Causes Injuries. 

*Proving Monetary Losses.

4 0

3 years ago

All parties need to communicate about strategy and schedule. which communication channel is most likely to meet their needs? mul

Nina [5.8K]

The most suitable strategy for all parties to communicate is by using a videoconference in which allows all of the people to have a meeting and to be able to see each of the people involved in a meeting. Using a conference call may also be useful but the lacking of it is that you may not be able to see the people you're talking to. Other choices aren't suitable as this will not allow you to talk to everyone all in the same time.

3 0

3 years ago

Nascar redirected its marketing efforts when a survey indicated that almost 50 percent of its fans were female. this is an examp

olga nikolaevna [1]

This would not be psychographic segmentation, as segmenting by gender would be demographic

4 0

3 years ago

Zach took $400,000 out of the bank and used it to start his new cookie business. The bank account pays 3 percent interest per ye

Leto [7]

Answer:

d) $6,000, -$6,000

Explanation:

Accounting profit = total revenue - explicit costs

=6000 x 2.5-9000 = $6000

Economic profit = accounting profit - interest on capital invested

=6000 - 400000 x 0.03

=$-6000

4 0

3 years ago