A Cost of Quality Classification Is Which of the Following

question 31

Multiple Choice

A cost of quality classification is which of the following?

• A) Material costs
• B) Prevention costs
• C) Variable overhead
• D) Direct labor
• E) Inventory costs

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Definitions:

Activity-Based Costing

An accounting method that assigns costs to products or services based on the activities and resources that contribute to their creation or delivery.

Direct Labour-Hours

The total hours worked directly on the manufacturing of goods or provision of services, often used as a basis for allocating overhead.

Overapplied Overhead

When the allocated manufacturing overhead cost exceeds the actual overhead incurred, resulting in a surplus in the cost coverage.

Activity Cost Pools

Aggregations of all the costs associated with particular activities, used in activity-based costing.