Question

What is termed as “Red Money”?

a. Cost of Prevention

b. Cost of Appraisal

c. Cost of Failure

d. Cost of Control

​

Answer 1

$\red{Cost \: of \: Failure}$

Hope it helps you....

Answer 2

The correct answer is

option C) Cost of Failure

Cost of Failure

• Red Money is a Cost of Failure either the manufacturing issues, Advertising money or Promotional losses.
• It is also a stock market loss of the company.

Cost of Prevention

• The cost of Prevention is money that is stored for the emergency time of the company.
• It is a company owner's equity in the company.

Cost of Appraisal

• Cost of Appraisal is a cost of reimbursement paid by the company for manufacturing defects and claims raised by the customers.

Cost of Control

• Cost of Control is a cost-cutting by the company to reduce business expenses to maximise profits in business.