Question

Match each definition with its related term by selecting the appropriate term in the dropdown provided. (Select "None of these are correct" If there is no term for the "Definition".) Definition A Activities that are performed to benefit the organization as a whole B. Activities that are independent of the of the number of units, but are performed for a group all at once C. Activities that vary in direct proportion to the number of units produced or customers served D. An activity, which if eliminated, would not change the perceived worth of the product or service E. An activity, which if eliminated, would change the perceived worth of the product or service FA demand-pull system Activity-Based Costing Appraisal or Inspection Costs Batch-Level Activities External Failure Costs G. A demand-push system. H A report that provides details about internal failure costs, Costs incurred to keep quality problems from happening Costs incurred to identify defective products before they get to customers K Costs that result from the defects caught during the inspection process Warranty costs, recalls, and product replacement costs WWTA linked set of activities required to design, develop, produce, market, deliver the product to customers, and aftermarket service A process that involves analyzing the feasibility of a product to meet a projected life cycle cost. A method that identifies the major activities that place demands on a company's resources and then assigns indirect costs to the products/services that create those demands N

Answer 1

As per the question , we have 11 options to choose from-

Activity Based Costing

Appraisal inspection cost

Batch level activity

Ext failure costs

None of these are true

Prevention costs

Unit-level activities

value chain analysis

Value added activity

facility level activity'

JIT

BELOW IS THE ANSWER

S.NO	Cost Type	Explaination
A	Facility Level Activity	These activities facilitate the organisation in general they are not dependent on any individual products or product lines
B	Batch-Level activities	These activities relate to batch of the product , independent to the number of units Eg: purchase order, equipment set up etc.
C	Unit-level costing	activities that vary in direct proprtion to a particular cost driver
D	None of these are correct	This is a part of non-value added activity as these do not impact the worth of the product, few more examples are a review or approval step in production, extra transportation etc.
E	Value added activity	This activity adds value to the worth of the product or it can transform the product to create worth example: drilling, packaging, etc.
F	Just in time	Products are ordered to meet the actual demands , therefore , it eliminates overstocking of inventory
G	None of these are correct	The demand push is based on the forecasting inventory rather than customer's actual demands, eg: Materials Requirements Planning that calculates and plans materials availability for production by scheduling and ordering ,
H	None of these are correct	Activities to cure defect before sent to customer is an Internal failure cost which is not mentioned in the list of selection few examples are rework cost, scrap, downtime cost etc.
I	Prevention Cost	Cost incurred to minimize any quality problems before the actual operation eg: training, development, planning inspections etc.
J	None of these are correct	Activities to cure defect before sent to customer is an Internal failure cost which is not mentioned in the list of selection few examples are rework cost, scrap, downtime cost etc.
K	Appraisal/Inspection cost	Costs incurred to discover or remove the defect before the products are shipped eg:inspections, quality checks etc.
L	External Failure cost	Costs incurred to remove defects after the customer receives the product examples: liability claims, warrant etc.
M	Value chain analysis	It is used to describe all business activities to create a product from start to finish to gain a competitive advantage
N	None of these are correct	This is a feasibility study in a life cycle of a product
O	Activity based costing	ABC breaks down the cost to create a product and the indirect costs are assigned to activities necessary for production