Which Term Below Best Describes the Quality Cost Category for "Cost

question 13

Multiple Choice

Which term below best describes the quality cost category for "cost of testing toasters before sale"?

• A)Appraisal costs
• B)Prevention costs
• C)Internal failure costs
• D)External failure costs

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Definitions:

Variable Overhead Efficiency Variance

This is the difference between the actual hours taken to produce something and the standard hours expected, multiplied by the variable overhead rate per hour.

Supplies Cost

The cost associated with materials and items that are consumed or used in the process of producing goods or providing services.

Machine-Hours

A measure of production output or capacity based on the number of hours a machine operates.

Variable Overhead Rate Variance

represents the difference between the actual variable overhead incurred and the standard variable overhead allocated for the actual production achieved.