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

question 47

Multiple Choice

Identify the following quality control activities as either value-added or non-value-added.
-Scrap material

• A)Value-added
• B)Non-value-added

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Definitions:

Fixed Overhead Cost

Costs that do not vary with production volume, such as rent, salaries, and insurance, and must be paid regardless of the level of output or sales.

Ending Inventory

The value of goods available for sale at the end of an accounting period, which will be carried over as the beginning inventory for the next period.

Variable Costing

An accounting method that only considers variable costs (costs that change with production volume) in the cost of production, excluding fixed costs.

Traditional Costing

A costing methodology that assigns overhead costs to products based on volume-related measures such as labor hours or machine hours.