Prior to the Implementation of Total Quality Management, Defective Items

question 21

Multiple Choice

Prior to the implementation of total quality management, defective items were ________.

• A)sold as perfect products
• B)incorporated into a new product
• C)scrapped or reworked
• D)stored indefinitely

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Definitions:

Direct Material Price

The cost of raw materials that are directly used in the manufacturing of a product.

Actual Production

The real, quantifiable output of goods or services produced by a company during a specific period, as opposed to theoretical or planned production levels.

Normal Production

The standard or average level of production volume that a company expects to achieve under normal operating conditions.

Direct Labour Rate Variance

A financial measure that calculates the difference between the actual cost of direct labor and the estimated (or standard) cost.