Quality Modifications Are Changes That Relate to a Product's

question 104

Multiple Choice

Quality modifications are changes that relate to a product's

• A) dependability and durability.
• B) effectiveness and versatility.
• C) price and availability.
• D) reliability and value.
• E) value and durability.

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Definitions:

Direct Materials

Raw materials that can be directly attributed to the production of specific goods or services and are considered a variable cost.

Factory Overhead

All indirect costs incurred during the manufacturing process, excluding direct materials and direct labor.

Factory Rent

Factory rent refers to the cost associated with leasing a premise for manufacturing operations, classified as an overhead expense in accounting.

Prime Costs

The sum of expenses for the raw materials and labor directly involved in the manufacturing of a product.