The Quality Assurance Function Helps to Achieve Quality By

question 78

Multiple Choice

The quality assurance function helps to achieve quality by:

• A)ensuring that the firm provides adequate training to its salespeople so that they can appropriately answer all customer queries.
• B)ensuring that the firm complies with laws and regulations regarding such things as product labeling, packaging, safety, and transportation.
• C)providing special statistical studies and analyses to the manufacturing or business support functions.
• D)authorizing sufficient budgeting for equipment, training, and other means of assuring quality.

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Definitions:

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead to individual products or job orders, based on a specific activity base, such as labor hours or machine hours.

Fixed Component

The portion of total costs that remains unchanged regardless of the level of production or business activity.

Variable Overhead Rate

The cost of indirect manufacturing expenses that fluctuate with production volume, calculated per unit of activity or base.

Efficiency Variance

A measure used in cost accounting to determine the difference between the actual cost of producing an item and the standard cost, based on the actual hours worked.