The ISO 9000 Standards

question 82

Multiple Choice

The ISO 9000 standards

• A)indicate which companies' products are better than those of competitors.
• B)allow management to decide how to meet the standards for quality assurance.
• C)include specific directives about product design,material procurement,and environmental responsibilities.
• D)compose a program of quality assurance under which companies are registered by the International Organizational for Standardization.

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Definitions:

Product Cost

The total expense incurred to create a product, including direct materials, labor, and overhead costs.

Overapplied

A situation in managerial accounting where the allocated indirect costs exceed the actual indirect costs incurred.

Underapplied

A situation where the allocated manufacturing overhead costs are less than the actual overhead costs incurred, indicating an underestimation of costs.

Actual Overhead

Actual overhead refers to the real costs incurred for indirect labor, materials, and other expenses necessary to run a business but not directly tied to specific products.