According to the Text, Which of the Following Items Is

question 27

Multiple Choice

According to the text, which of the following items is not considered a broad guideline that can be used in the construction of a comprehensive framework (or system) for the management and control of performance quality?

• A) Use of target costing.
• B) Knowledge of underlying business processes.
• C) Customer-based viewpoint.
• D) Inclusion of non-financial performance indicators.
• E) Reporting of quality cost information, based on a cost-of-quality classification framework.

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Definitions:

Total Variance

The overall difference between planned or standard costs and the actual costs incurred.

Total Labor Variance

The difference between the actual cost of labor and the budgeted or standard cost of labor over a period.

Total Overhead Variance

The difference between actual overhead costs incurred and overhead costs allocated to production, based on standard rates, during a specific period.

Direct Labor Price Variance

A measure of the difference between the actual cost of direct labor and the standard cost of direct labor multiplied by the actual hours worked.