Calculate beta prevention cost for the year, Accounting Basics

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Calculate beta prevention cost for the year

Question: Beta Company had total sales of $2,700,000 for the fiscal year ending on December 31, 20X1. The company's costs of quality are as follows: Line Item Description Amount Prototype inspection $128,000 Quality circles 76,000 Design changes 44,000 Product liability 39,000 Field testing 61,000 Calculate Beta's prevention cost for the year. a. $204,000 b. $83,000 c. $144,000 d. $120,000

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Accounting Basics: Calculate beta prevention cost for the year

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