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Question
Pollenti Company has just merged with another industrial firm whose business had been failing. Pollenti immediately conducted a thorough study of the new company's work processes, and produced a report including the data shown below:
A new inspection process is recommended to minimize defective raw materials. It would cost $12,000 to implement.
Shoddy business practices are resulting in excessive warranty costsue004$15,000 more than normal due mainly to material failure.
Reengineering of the assembly line will increase productivity. It would cost $18,000 to implement.
Inefficient workplace design is costing $5,000 in unnecessary rework costs.
Estimated amount of lost profits due to dissatisfied customers who turn to the competition is $80,000.
Based on the above, what is the amount of appraisal costs, if any, included here?
A) $18,000
B) $12,000
C) $15,000
D) Zero
Answer
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Related questions
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At the end of the year, actual data were as follows:
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Which of the following is TRUE of a completed worksheet?
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B) The total debits in the income statement column equal the dividends paid.
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B) classified form balance sheet.
C) account form balance sheet.
D) audited form balance sheet.
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B) Current assets
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The post-closing trial balance is an optional step.
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When a business makes a cash payment, the cash account is always debited.
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B) posting.
C) proofing.
D) footing.
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A) chart of accounts.
B) ledger.
C) trial balance.
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Answer: B
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Which of the following statements about revenue is CORRECT?
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B) Revenues decrease owner's equity, so a revenue account's normal balance is a debit balance.
C) Revenues increase owner's equity, so a revenue account's normal balance is a debit balance.
D) Revenues increase owner's equity, so a revenue account's normal balance is a credit balance.
Q:
The balance of an account is the:
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B) account number, as shown in the chart of accounts.
C) sum of the debits only.
D) sum of the credits only.
Q:
Journalizing a transaction means:
A) calculating the balance in an account.
B) finding the account number in the chart of accounts.
C) recording the transaction, including a brief explanation.
D) copying the information from the journal to the ledger.
Q:
In the accounting system, the first place that transactions are recorded is the ledger.
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For liabilities and revenues, a debit increases the account.