Which of the Following Is a Consequence of Improved Quality

question 43

Multiple Choice

Which of the following is a consequence of improved quality control?

• A)Greater warranty costs
• B)Higher scrap costs
• C)Direct reduction in unit costs
• D)Decreased productivity
• E)Reduced inventory turnover

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Definitions:

Direct Costs

Direct costs are expenses that can be directly attributed to a specific cost object, such as materials and labor directly involved in producing a product.

Indirect Costs

Expenses not directly tied to the production of a product or service, such as rent, utilities, and administrative salaries.

Cost Object

Any item for which a separate measurement of costs is desired, such as a product, service, project, or department.

Normalised Overhead Rate

A rate calculated to allocate overhead costs uniformly throughout the production process, adjusted for variations to ensure consistency over time.