What Is the Traditional Approach That Permits Defects to Occur

question 71

Multiple Choice

What is the traditional approach that permits defects to occur as long as they remain under a certain level?

• A)acceptable quality level
• B)zero defects
• C)total quality control
• D)conventional quality level

---

Definitions:

Fixed Factory Overhead Volume Variance

A measure used to assess the difference between the budgeted and the actual volume of production, impacting the budgeted fixed overhead costs.

Fixed Factory Overhead Volume Variance

This calculates the difference between the budgeted and actual volume of production, affecting the fixed overhead costs allocated to each unit of production.

Variable Factory Overhead Controllable Variance

The difference between the actual variable overhead costs and the budgeted costs controllable by management.

Variances

Differences between planned and actual performance in budgeting or costing.