Crabbys Seafood Restaurant is a family-owned restaurant that has been around for many years and takes pride
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Costs of compensating customers for unsatisfactory meals .....$ 7,000
Employee training for cooks and wait staff ...........$15,000
Food poisoning liability lawsuits ................$20,000
Cost of remaking entrees ...................$10,000
Inspection of incoming ingredients ...............$ 5,000
Spoilage and waste from discarding poor-quality food ........$ 2,500
Lost sales .........................$15,000
Required
A. Compute total prevention costs.
B. Compute total appraisal costs.
C. Compute total internal failure costs.
D. Compute total external failure costs.
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Related Book For
Managerial Accounting A Focus on Ethical Decision Making
ISBN: 978-0324663853
5th edition
Authors: Steve Jackson, Roby Sawyers, Greg Jenkins
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