Which of the Following Would Be Classified as an External

question 120

Multiple Choice

Which of the following would be classified as an external failure cost on a quality cost report?

• A) Returns and allowances arising from quality problems.
• B) Quality improvement projects.
• C) Quality engineering.
• D) Net cost of spoilage.

Grasp the significance of direct materials, direct labor, and factory overhead costs in product costing.

Understand the concept of conversion costs and its components.

Acknowledge the financial responsibilities and functions that fall under the chief financial officer (CFO).

Understand the classification of manufacturing costs into direct materials, direct labor, and factory overhead.