Page 3 of 13 Chi 3. Which of the following statements is NOT true? Quality cost is cost incurred to prevent defects or that results from defects in products. O Opportunity costs should be considered when making decisions. Quality training is a common example of internal failure costs. X prevention Differential costs are the difference in cost between any two alternatives. O Differential costs can be either fixed or variable costs. UND chl OMADL 4 During the month of February, Madison Company incurred a prime cost of $80,000. The company's manufacturing overhead cost is 40% of its prime cost. Also, the company spent $2,000 on wages paid to forklift operator in finished goods warehouse. During February, the total product cost was 1 bost was n selling MOH = 40% x 80k - 32K. 80.000 110,000 112,000 114,000 133,333 Total product cost 80k +32k. = 112k