CAS - 21 - Quality control

Quality Control cost allocation must be traced or apportioned by benefits received and disclosed when material.

The standard sets uniform rules for measuring and assigning Quality Control cost: aggregate in-house resource costs and invoice-based outsourced costs, identify prevention and appraisal components, and use traceability or incurred amounts where traceability is infeasible. Exclude finance costs, imputed costs, penalties and material abnormal portions; deduct related subsidies. Assign directly traceable costs to cost objects and apportion others by benefits received. Present material quality control cost as a separate head and disclose distribution basis, resource quantities and costs, related-party payments, foreign exchange impact, abnormal portions and excluded penalties where material and quantifiable.