Which One of the Following Is Considered to Be an Appraisal

question 78

Multiple Choice

Which one of the following is considered to be an appraisal cost?

• A) cost of quality audits
• B) cost of supplier programs
• C) cost of rework
• D) cost of process design

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Definitions:

Labour Efficiency Variance

A metric that assesses the difference between the expected amount of labor time to produce a given level of output and the actual labor time used.

Labour Rate Variance

The difference between the actual wage rate paid to workers and the expected (or standard) wage rate, multiplied by the actual hours worked.

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.