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TMI BlogQuality controlX X X X Extracts X X X X X X X X Extracts X X X X ..... cost with reasonable accuracy. 3. Scope The standard should be applied to cost statements which require classification, measurement, assignment, presentation and disclosure of Quality Control cost including those requiring attestation. 4. Definitions The following terms are being used in this standard with the meaning specified. 4.1 Abnormal cost: An unusual or atypical cost whose occurrence is usually irregular and unexpected and/ or due to some abnormal situation of the production or operation.1 4.2 Cost Object: This includes a product, service, cost centre, activity, sub-activity, project, contract, customer or distribution channel or any other unit in relation to which costs are ascertained.2 4.3 Defectives: End Product and/or in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ervice is fitness of that product or service for meeting its intended use as required by customer. 4.8 Quality control: A procedure or a set of procedures exclusively designed to ensure that the manufactured products or performed service adhere to a defined set of quality criterion or meets requirement of the client or the customer. 4.9 Quality Control cost: This represents Cost of resources consumed towards quality control procedures. 4.10 Scrap: Discarded material having some value in few cases and which is usually either disposed of without further treatment (other than reclamation and handling) or reintroduced into the production process in place of raw material6. 4.11 Waste and spoilage: 4.11.1 Waste: Material loss during producti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d costs. 5.6 Any Subsidy/Grant/Incentive or any such payment received/receivable with respect to any Quality Control cost shall be reduced for ascertainment of the cost of the cost object to which such amounts are related. 5.7 Any abnormal portion of the Quality Control cost where it is material and quantifiable shall not form part of the Cost of Quality Control. 5.8 Penalties, damages paid to statutory authorities or other third parties shall not form part of the Quality Control cost. 5.9 Any change in the cost accounting principles applied for the measurement of the Quality Control cost shall be made only if, it is required by law or for compliance with the requirements of a cost accounting standard, or a change would result in a more ..... X X X X Extracts X X X X X X X X Extracts X X X X
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