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

question 62

Multiple Choice

Identify the following quality control activities as either value-added or non-value-added.
-Finished goods inspection

• A)Value-added
• B)Non-value-added

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Definitions:

Direct Labour Costs

Costs that can be directly attributed to the production of goods or services, such as wages for workers manufacturing a product.

Variable Overhead Spending Variance

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

Variable Manufacturing Overhead Cost Incurred

The variable expenses directly related to the manufacturing process, such as materials and labor, that change with production levels.

Total Variable Overhead Variance

The difference between the actual variable overhead costs incurred and the standard variable overhead costs expected for the actual production level.