Quality Experts Maintain That Total Quality Costs Should NOT Exceed

question 72

Multiple Choice

Quality experts maintain that total quality costs should NOT exceed

• A) 2 to 4 percent of sales.
• B) 2 to 4 percent of total costs.
• C) 2 to 4 percent of profit.
• D) profit.

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Definitions:

Activity Costs

Expenses associated with specific activities within a manufacturing or service delivery process, including labor, materials, and overhead.

Flexed

Adjusted to reflect a change in the level of activity or volume, often used in budgeting to show how costs vary with different levels of output.

Standard Costing System

A cost accounting method that assigns expected costs to products in order to estimate the cost of production and help with budget planning.

Direct Labour Hours

The total hours worked directly on a specific job or task by employees, often used to allocate labor costs to products or services.