Identity the Following by Their Type of Quality Cost

question 95

Multiple Choice

Identity the following by their type of quality cost.
-Warranty work

• A)Preventive costs
• B)Appraisal costs
• C)Internal failure costs
• D)External failure costs

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Definitions:

Variable Cost

Charges that are directly linked to the volume of production or sales metrics.

Fixed Costs

Costs that remain constant regardless of the amount of goods produced or sold, including expenses like rent, salaries, and insurance fees.

High-low Method

A technique in cost accounting used to estimate fixed and variable costs by analyzing the highest and lowest levels of activity and their respective costs.

Variable Cost Per Unit

The cost that varies with the level of output or production, calculated on a per-unit basis.