TMI BlogQuality controlX X X X Extracts X X X X X X X X Extracts X X X X ..... igning Quality Control 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 ascertain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... conformance to requirements or specifications. The quality of a product or service 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... procured resources shall not form part of Quality Control cost. 5.5 Quality Control costs shall not include imputed 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, i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st Statement or as a foot note or as a separate schedule. 8.4 Any change in the cost accounting principles and methods applied for the measurement and assignment of the Quality Control cost during the period covered by the cost statement which has a material effect on the Quality Control cost shall be disclosed. Where the effect of such change is not ascertainable wholly or partly the fact shall be indicated. 9. Effective date: This Cost Accounting Standard shall be effective from the period commencing on or after 1st April 2014 for being applied for the preparation and certification of General Purpose Cost Accounting Statements. - - statute, statutory provisions legislation, law, enactment, Acts, Rules, Regulations, Taxation ..... X X X X Extracts X X X X X X X X Extracts X X X X
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