Identify the Following Quality Control Activities as Either Value-Added or Non-Value-Added

question 14

Multiple Choice

Identify the following quality control activities as either value-added or non-value-added.
-Customer service calls

• A)Value-added
• B)Non-value-added

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Definitions:

Fixed Overhead Volume Variance

The difference between the budgeted and actual volume of production, multiplied by the fixed overhead rate, indicating inefficiencies in utilizing production capacities.

Direct Labour Hours

A measure of the amount of time workers spend directly manufacturing a product, which is often used to allocate manufacturing overhead in product costing.

Standard Costing System

An accounting method that uses estimated costs for planning and decision-making purposes.

Variable Overhead Spending Variance

The difference between the actual variable overhead costs incurred and the expected costs based on standard rates.