Costs That Are Incurred for Monitoring and Inspecting Are

question 115

Multiple Choice

Costs that are incurred for monitoring and inspecting are:

• A)prevention costs
• B)detection costs
• C)appraisal costs
• D)failure costs

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Definitions:

FOH Budget Variance

The difference between the actual factory overhead costs incurred and the budgeted overhead costs set at the beginning of a period.

Fixed Manufacturing Overhead

Costs associated with production that remain constant, regardless of the scale of production output, including salaries of managerial staff and depreciation of factory equipment.

Fixed Overhead Applied

The portion of the estimated fixed overhead costs charged to production over a specific period based on a predetermined rate.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to products, based on a planned level of activity or volume.