Section 12(k) in The Companies (Cost records and audit) Rules, 2014
(k)Quality control cost that is directly traceable to the cost object shall be assigned to that cost object. Assignment of quality control cost to the cost objects shall be based on benefits received by them on the principles, namely:-(i)Cause and Effect - Cause is the process or operation or activity and effect is the incurrence of cost and(ii)Benefits received - overheads are to be apportioned to the various cost objects in proportion to the benefits received by them.
