The Term "Quality Audit" Can Refer to the Appraisal of the Quality

question 89

Multiple Choice

The term "quality audit" can refer to the appraisal of the quality system of

• A) An entire plant or company. II. One product. III. One major quality activity.
• B) I only
• C) I, II and III
• D) II and III only
• E) I and III only

---

Definitions:

Variable Costing

A costing method that includes only variable manufacturing costs - direct materials, direct labor, and variable manufacturing overhead - in the cost of a product.

Unit Product Cost

The total cost assigned to a single unit of product, including direct materials, direct labor, and allocated overhead.

Absorption Costing

An approach in financial accounting that wraps all expenses incurred in manufacturing including direct materials, direct labor, and all overhead (variable and fixed), into the product's cost.

Net Operating Income

The total revenue of a business minus its operating expenses, excluding taxes and interest.