A Statement of Functional Expenses Presents a Matrix of Expenses

question 136

True/False

A Statement of Functional Expenses presents a matrix of expenses classified by function and by object or natural classification.

---

Definitions:

External Failure Cost

Costs incurred when a product or service fails to meet quality standards after being delivered to the customer, including returns, repairs, and warranty claims.

Quality Cost Report

A document that details the costs associated with preventing, detecting, and correcting defective work in a company.

Warranty Period

The specific time frame during which a manufacturer or seller commits to repair or replace defective products.

Prevention Cost

Expenses incurred to avoid or minimize the number of defects in products, part of quality costs including training, quality planning, and product design.