Which of the Following Statements Is True Regarding a Long-Range

question 54

Multiple Choice

Which of the following statements is true regarding a long-range quality report?

• A)This report measures trends of quality costs over time.
• B)This report measures interim progress towards the zero-defect goal.
• C)This report measures actual costs of quality compared to budgeted costs of quality for a period of time.
• D)This report measures actual costs of quality versus what quality costs would be at an ideal or targeted zero-defect standard.

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Definitions:

Standard Labor Hours

The estimated amount of time expected to produce a unit of output under normal conditions.

Overhead

Indirect costs related to the day-to-day running of a business, excluding direct costs like labor and materials.

Unfavorable Volume Variance

A cost variance that occurs when the actual volume of production or sales negatively deviates from expected volumes, often leading to higher costs or lower profits.

Failure To Maintain

A situation where the required level of upkeep, documentation, or regulatory compliance has not been sustained.