"Conformance to Specifications" Implies That

question 204

Multiple Choice

"Conformance to specifications" implies that

• A) there is no need to scrap or rework any product because it always meets specifications.
• B) quality standards are specified for products or services.
• C) quality performance is measured by the product's value.
• D) quality level will be high.

---

Definitions:

Variable Expenses

Expenses that vary directly with the level of production or sales volume, such as raw materials and direct labor.

Fixed Expenses

Costs that remain constant over a specified period regardless of changes in the level of activity or volume of production.

Margin of Safety

The difference between actual or expected sales and the sales level at the break-even point, indicating the amount by which sales can drop before the company incurs a loss.

Unit Variable Expenses

Costs that vary directly with the volume of production or sales per unit.