Question

When preparing the report to analyze a proposed quality improvement​ program, which of the following costs are included in the total costs of undertaking the quality improvement​ program? A. warranty costs B. sales returns C. cost of rework D. inspection of raw materials

Answer 1

Answer:

D. Inspection of raw materials

Explanation:

Quality improvement program is undertaken by entity in order to improve their processes and procedures for producing goods or providing services.

As every other business undertaking, entities incur cost when undertaking quality improvement program. Such cost includes data collection cost, survey cost and inspection cost.

In this case, inspection of raw materials will be included in the total costs of undertaking the quality improvement program.

Warranty costs, sales returns and cost of rework are all related to cost incurring in the ordinary business of an entity.