Question 1

Discuss the four categories of quality costs.

Accepted Answer

Prevention costs are incurred to prevent

Question 2

Which of the following is false as it relates to quality?

Accepted Answer

A) Quality is the total of all characteristics of a product or service that impacts on its ability to meet the needs of a specific person. 
B) Quality must always be viewed from the user's perspective. 
C) Quality is never concerned with what the user thinks,feels,or deems important. 
D) The definition of quality has evolved through time and is more currently comprehensive than in the past. 
A) Quality is the total of all characteristics of a product or service that impacts on its ability to meet the needs of a specific person. 
B) Quality must always be viewed from the user's perspective. 
C) Quality is never concerned with what the user thinks,feels,or deems important. 
D) The definition of quality has evolved through time and is more currently comprehensive than in the past.

Question 3

All attempts to reduce variability and defects in products reflect the implementation of

Accepted Answer

A) activity analysis. 
B) statistical process control. 
C) quality control. 
D) control charts. 
A) activity analysis. 
B) statistical process control. 
C) quality control. 
D) control charts.

Question 4

Total quality management is inseparable from the concept of

Accepted Answer

A) ISO certification. 
B) centralized organizational structure. 
C) continuous improvement. 
D) the product life cycle. 
A) ISO certification. 
B) centralized organizational structure. 
C) continuous improvement. 
D) the product life cycle.

Question 5

The balanced scorecard can be used to provide information on quality in an organization.

Accepted Answer

A) True 
 B)False

Question 6

Conducting a quality audit is a prevention cost.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is not a critical element in a total quality management system?

Accepted Answer

A) employee involvement 
B) activity-based costing 
C) continuous improvement 
D) problem prevention emphasis 
A) employee involvement 
B) activity-based costing 
C) continuous improvement 
D) problem prevention emphasis

Question 8

A total quality system should place an emphasis on inspection.

Accepted Answer

A) True 
 B)False

Question 9

Pareto analysis is frequently used to aid management in deciding where to concentrate quality prevention cost dollars.

Accepted Answer

A) True 
 B)False

Question 10

Greensboro Corporation
Greensboro Corporation is a manufacturer of electronic blood pressure monitors for
home use.The following is a summary of quality costs for the first year of operations.
   Refer to Greensboro Corporation.Compute the total rework cost.

Accepted Answer

R = (Y)(r)

Question 11

Testing and adjusting manufacturing equipment is an appraisal cost.

Accepted Answer

A) True 
 B)False

Question 12

Comparing the way a "best-in-class" company performs a specific activity (such as distribution)is called

Accepted Answer

A) process benchmarking. 
B) results benchmarking. 
C) total quality management benchmarking. 
D) SPC benchmarking. 
A) process benchmarking. 
B) results benchmarking. 
C) total quality management benchmarking. 
D) SPC benchmarking.

Question 13

Silvers Company's cost of compliance is $58,000.Appraisal cost is $21,000 and failure cost is $32,000.The company's total quality cost is

Accepted Answer

A) $53,000. 
B) $79,000. 
C) $90,000. 
D) $111,000. 
A) $53,000. 
B) $79,000. 
C) $90,000. 
D) $111,000.

Question 14

A quality audit involves a review of

Accepted Answer

A) yes yes yes 
B) no yes yes 
C) no no no 
D) yes no yes 
A) yes yes yes 
B) no yes yes 
C) no no no 
D) yes no yes

Question 15

The two costs of noncompliance are ___________________________________ and ___________________________________.

Accepted Answer

internal f

Question 16

Business Solutions Corporation Business Solutions Corporation is a manufacturer of a versatile statistical calculator.The following information is a summary of defective and returned units for the previous year.
  Refer to Business Solutions Corporation.The total failure cost is

Accepted Answer

A) $15,000. 
B) $13,500. 
C) $11,250. 
D) $8,250. 
A) $15,000. 
B) $13,500. 
C) $11,250. 
D) $8,250.

Question 17

Greensboro Corporation
Greensboro Corporation is a manufacturer of electronic blood pressure monitors for
home use.The following is a summary of quality costs for the first year of operations.
   Refer to Greensboro Corporation.Determine the total quality cost.

Accepted Answer

T = K + A + F = $17,

Question 18

Lawn Solutions,Inc.
Lawn Solutions,Inc.has just finished its first year of business.Lawn Solutions,Inc.makes decorative outdoor furniture.The firm manufactured 2,500 pieces of furniture during the year: 2,400 were sold at garden centers for $456,000; 100 pieces were defective and could only be sold as scrap metal (25 pounds each and can be sold for $2.50 per pound).No defective units could be reworked.During the year the following costs were incurred:
   Refer to Lawn Solutions,Inc.Compute the total profits lost by the company from selling scrap units during its first year of operations.

Accepted Answer

Price for good units: $456,000

Question 19

Which of the following is not a step in benchmarking procedures?

Accepted Answer

A) analyze the "positive gap" 
B) engage in continuous improvement 
C) analyze the "negative gap" 
D) identify "best-in-class" companies 
A) analyze the "positive gap" 
B) engage in continuous improvement 
C) analyze the "negative gap" 
D) identify "best-in-class" companies

Question 20

When implementing TQM,an organization should establish long-term relationships with as many suppliers as possible.

Accepted Answer

A) True 
 B)False

Discuss the four categories of quality costs.

Which of the following is false as it relates to quality?

All attempts to reduce variability and defects in products reflect the implementation of

Total quality management is inseparable from the concept of

The balanced scorecard can be used to provide information on quality in an organization.

Conducting a quality audit is a prevention cost.

Which of the following is not a critical element in a total quality management system?

A total quality system should place an emphasis on inspection.

Pareto analysis is frequently used to aid management in deciding where to concentrate quality prevention cost dollars.

Greensboro Corporation Greensboro Corporation is a manufacturer of electronic blood pressure monitors for home use.The following is a summary of quality costs for the first year of operations. Refer to Greensboro Corporation.Compute the total rework cost.

Testing and adjusting manufacturing equipment is an appraisal cost.

Comparing the way a "best-in-class" company performs a specific activity (such as distribution)is called

Silvers Company's cost of compliance is $58,000.Appraisal cost is $21,000 and failure cost is $32,000.The company's total quality cost is

A quality audit involves a review of

The two costs of noncompliance are _ and _.

Business Solutions Corporation Business Solutions Corporation is a manufacturer of a versatile statistical calculator.The following information is a summary of defective and returned units for the previous year. Refer to Business Solutions Corporation.The total failure cost is

Greensboro Corporation Greensboro Corporation is a manufacturer of electronic blood pressure monitors for home use.The following is a summary of quality costs for the first year of operations. Refer to Greensboro Corporation.Determine the total quality cost.

Which of the following is not a step in benchmarking procedures?

When implementing TQM,an organization should establish long-term relationships with as many suppliers as possible.

Introduction to Cost Accounting

Cost Terminology and Cost Behaviors

Predetermined Overhead Rates, flexible Budgets, and Absorptionvariable Costing

Activity-Based Management and Activity-Based Costing

Job Order Costing

Process Costing

Standard Costing and Variance Analysis

The Master Budget

Break-Even Point and Cost-Volume-Profit Analysis

Relevant Information for Decision Making

Allocation of Joint Costs and Accounting for By-Products

Introduction to Cost Management Systems

Responsibility Accounting, support Department Allocations, and Transfer Pricing

Performance Measurement, balanced Scorecards, and Performance Rewards

Capital Budgeting

Managing Costs and Uncertainty

Inventory and Production Management

Emerging Management Practices

Filters

Exam 17: Implementing Quality Concepts

Discuss the four categories of quality costs.

Which of the following is false as it relates to quality?

All attempts to reduce variability and defects in products reflect the implementation of

Total quality management is inseparable from the concept of

The balanced scorecard can be used to provide information on quality in an organization.

Conducting a quality audit is a prevention cost.

Which of the following is not a critical element in a total quality management system?

A total quality system should place an emphasis on inspection.

Pareto analysis is frequently used to aid management in deciding where to concentrate quality prevention cost dollars.

Greensboro Corporation Greensboro Corporation is a manufacturer of electronic blood pressure monitors for home use.The following is a summary of quality costs for the first year of operations. Refer to Greensboro Corporation.Compute the total rework cost.

Testing and adjusting manufacturing equipment is an appraisal cost.

Comparing the way a "best-in-class" company performs a specific activity (such as distribution)is called

Silvers Company's cost of compliance is $58,000.Appraisal cost is $21,000 and failure cost is $32,000.The company's total quality cost is

A quality audit involves a review of

The two costs of noncompliance are ___________________________________ and ___________________________________.

Business Solutions Corporation Business Solutions Corporation is a manufacturer of a versatile statistical calculator.The following information is a summary of defective and returned units for the previous year. Refer to Business Solutions Corporation.The total failure cost is

Greensboro Corporation Greensboro Corporation is a manufacturer of electronic blood pressure monitors for home use.The following is a summary of quality costs for the first year of operations. Refer to Greensboro Corporation.Determine the total quality cost.

Which of the following is not a step in benchmarking procedures?

When implementing TQM,an organization should establish long-term relationships with as many suppliers as possible.

Introduction to Cost Accounting

Cost Terminology and Cost Behaviors

Predetermined Overhead Rates, flexible Budgets, and Absorptionvariable Costing

Activity-Based Management and Activity-Based Costing

Job Order Costing

Process Costing

Standard Costing and Variance Analysis

The Master Budget

Break-Even Point and Cost-Volume-Profit Analysis

Relevant Information for Decision Making

Allocation of Joint Costs and Accounting for By-Products

Introduction to Cost Management Systems

Responsibility Accounting, support Department Allocations, and Transfer Pricing

Performance Measurement, balanced Scorecards, and Performance Rewards

Capital Budgeting

Managing Costs and Uncertainty

Inventory and Production Management

Emerging Management Practices

Filters

The two costs of noncompliance are _ and _.