(Appendix 1A) Circle K Toys, Inc. manufactures toys and children's clothing and sells these products to retail outlets. The following costs were incurred in performing quality activities at Circle K during the year:

-What is the total of the prevention costs for Circle K?
A) $394,000
B) $409,000
C) $455,000
D) $470,000

Question

(Appendix 1A) Circle K Toys, Inc. manufactures toys and children's clothing and sells these products to retail outlets. The following costs were incurred in performing quality activities at Circle K during the year:
 
-What is the total of the prevention costs for Circle K?
A) $394,000 
B) $409,000 
C) $455,000 
D) $470,000

Quizplus · Accepted Answer

Prevention costs = Quality training activities + Quality improvement activities + Quality data collection and reporting activities = $240,000 + $154,000 + $15,000 = $409,000