Cost of Quality Name Four Components of the Cost of Quality and List

question 29

Essay

Cost of quality
Name four components of the cost of quality and list three examples of each.

---

Definitions:

Expense Recognition

The accounting principle of matching expenses with revenues in the period in which they are incurred to generate those revenues, ensuring accurate financial reporting.

Insurance Premium

The amount paid periodically to an insurer by the insured for covering their risk.

Insurance Expense

The cost recognized in accounting for premiums paid on insurance policies, which protect the company's assets or activities.

Annual Income Statement

A financial statement that summarizes the revenues, costs, and expenses incurred over a fiscal year, showing the company's annual profit or loss.