Question 1

Match the description of the tool used to assess quality to the appropriate name:
-Cause and effect diagram

Accepted Answer

A)  Shows a trend in variation in product or service attributes over time by reflecting measures of important quality features taken at defined points in time. 
B)  Describes variation in product or service attributes by measuring important quality features and comparing to upper and lower limits. 
C)  Displays the frequency distribution of an attribute's measures around an average attribute value. 
D)  Formulates diagnostic signals that identify potential causes of product or service defects. 
E)  Plot of two measures that may be related.
F) Prioritizes the causes of problems or defects as bars of varying height, in order of frequency or size.
G) Reflects cause and effect and sequential linkages among process activities. 
A)  Shows a trend in variation in product or service attributes over time by reflecting measures of important quality features taken at defined points in time. 
B)  Describes variation in product or service attributes by measuring important quality features and comparing to upper and lower limits. 
C)  Displays the frequency distribution of an attribute's measures around an average attribute value. 
D)  Formulates diagnostic signals that identify potential causes of product or service defects. 
E)  Plot of two measures that may be related.
F) Prioritizes the causes of problems or defects as bars of varying height, in order of frequency or size.
G) Reflects cause and effect and sequential linkages among process activities.

Question 2

Production cycle time does not factor in time to correct mistakes.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is not a component of customer response time?

Accepted Answer

A)  Cycle time 
B)  Order receipt time 
C)  Order delivery time 
D)  Research and development time 
A)  Cycle time 
B)  Order receipt time 
C)  Order delivery time 
D)  Research and development time

Question 4

A statistical control chart displays customer response times against the historical mean and historical variation.

Accepted Answer

A) True 
 B)False

Question 5

Use the following to answer questions:
Le Francois Company developed the following information for its first quarter cost of quality report:
  
-The total cost of prevention activities for Le Francois Company is:

Accepted Answer

A)  $294,000 
B)  $224,000 
C)  $459,200 
D)  $504,000 
A)  $294,000 
B)  $224,000 
C)  $459,200 
D)  $504,000

Question 6

Dayton Extruded Plastics is a company involved in the injection molding process of plastic extruders. The company had a process of inspection, checking line work and handling returns from customers to identify and correct quality problems. Scrapped extruders were ground into powder and fed back to the extruders as raw material; thus all scrapped extruders were reused at some point. The company's cost accounting system indicated that the cost of scrap was "zero,"
a view also held by Dayton Extruded's management. (Source: "Activity Based management"
by Peter B. Turney published in Management Accounting)
Required:
a) Comment on the view that scrap costs were zero at Dayton Extruded Plastics.
b) Identify internal and external failure activities that were required by Dayton Extruded.
c) Identify prevention and appraisal activities that could have been employed.

Accepted Answer

(a) Cost of scrap, if properly measured,

Question 7

Match the description of the tool used to assess quality to the appropriate name:
-Pareto chart

Accepted Answer

A)  Shows a trend in variation in product or service attributes over time by reflecting measures of important quality features taken at defined points in time. 
B)  Describes variation in product or service attributes by measuring important quality features and comparing to upper and lower limits. 
C)  Displays the frequency distribution of an attribute's measures around an average attribute value. 
D)  Formulates diagnostic signals that identify potential causes of product or service defects. 
E)  Plot of two measures that may be related.
F) Prioritizes the causes of problems or defects as bars of varying height, in order of frequency or size.
G) Reflects cause and effect and sequential linkages among process activities. 
A)  Shows a trend in variation in product or service attributes over time by reflecting measures of important quality features taken at defined points in time. 
B)  Describes variation in product or service attributes by measuring important quality features and comparing to upper and lower limits. 
C)  Displays the frequency distribution of an attribute's measures around an average attribute value. 
D)  Formulates diagnostic signals that identify potential causes of product or service defects. 
E)  Plot of two measures that may be related.
F) Prioritizes the causes of problems or defects as bars of varying height, in order of frequency or size.
G) Reflects cause and effect and sequential linkages among process activities.

Question 8

Which of the following statements describes a histogram?

Accepted Answer

A)  Shows trends in variation in product or service attributes over time by reflecting measures of importan quality features taken at defined points in time 
B)  Displays frequency distribution of an attribute's measures around an average attribute value 
C)  Describes variation in product or service attributes over time by measuring important quality feature and comparing to maximum and minimum desired levels 
D)  Plots two measures that may be related to diagnose cause and effect outcomes and activities that may drive them 
A)  Shows trends in variation in product or service attributes over time by reflecting measures of importan quality features taken at defined points in time 
B)  Displays frequency distribution of an attribute's measures around an average attribute value 
C)  Describes variation in product or service attributes over time by measuring important quality feature and comparing to maximum and minimum desired levels 
D)  Plots two measures that may be related to diagnose cause and effect outcomes and activities that may drive them

Question 9

Engaging in marketing activities to improve a company's image that has been tarnished from poor product quality is an example of an external failure activity

Accepted Answer

A) True 
 B)False

Question 10

Stonehouse Corporation developed the following information regarding quality for the first quarter of the year 2008:
  
Required: Prepare a cost of quality report sorting costs by quality activity and expressing in relevant percentage terms.

Accepted Answer

The answer of Stonehouse Corporation developed the following information regarding...

Question 11

Use the following to answer questions:
Listed below are selected operating costs for Miskelly Products last month:
  
-Miskelly's total prevention costs for the month were:

Accepted Answer

A)  $5,408 
B)  $6,980 
C)  $1,572 
D)  $6,798 
A)  $5,408 
B)  $6,980 
C)  $1,572 
D)  $6,798

Question 12

Traditionally, companies in the United States have employed a "push"
manufacturing style. Studies in Activity Based Management and Quality Control have indicated that this approach is filled with many non-value-added activities, which increase overall costs and reduce profits. The "push"
style is being replaced with a "pull"
approach.
Required: Briefly describe the major differences between the push and pull approaches. What non-value added activities are eliminated in a pull manufacturing system?

Accepted Answer

A push manufacturer begins by forecastin

Question 13

The diagnostic tool presented above is known as a:
The quality control department at Conant Manufacturing Company prepared the following diagnostic tool regarding causes of quality problems:

Accepted Answer

A)  Flowchart 
B)  Pareto chart 
C)  Histogram 
D)  Control chart 
A)  Flowchart 
B)  Pareto chart 
C)  Histogram 
D)  Control chart

Question 14

Match the description of the tool used to assess quality to the appropriate name:
-Control chart

Accepted Answer

A)  Shows a trend in variation in product or service attributes over time by reflecting measures of important quality features taken at defined points in time. 
B)  Describes variation in product or service attributes by measuring important quality features and comparing to upper and lower limits. 
C)  Displays the frequency distribution of an attribute's measures around an average attribute value. 
D)  Formulates diagnostic signals that identify potential causes of product or service defects. 
E)  Plot of two measures that may be related.
F) Prioritizes the causes of problems or defects as bars of varying height, in order of frequency or size.
G) Reflects cause and effect and sequential linkages among process activities. 
A)  Shows a trend in variation in product or service attributes over time by reflecting measures of important quality features taken at defined points in time. 
B)  Describes variation in product or service attributes by measuring important quality features and comparing to upper and lower limits. 
C)  Displays the frequency distribution of an attribute's measures around an average attribute value. 
D)  Formulates diagnostic signals that identify potential causes of product or service defects. 
E)  Plot of two measures that may be related.
F) Prioritizes the causes of problems or defects as bars of varying height, in order of frequency or size.
G) Reflects cause and effect and sequential linkages among process activities.

Question 15

Redoing customer service is classified as an external failure activity.

Accepted Answer

A) True 
 B)False

Question 16

Match the description of the tool used to assess quality to the appropriate name:
-Run chart

Accepted Answer

A)  Shows a trend in variation in product or service attributes over time by reflecting measures of important quality features taken at defined points in time. 
B)  Describes variation in product or service attributes by measuring important quality features and comparing to upper and lower limits. 
C)  Displays the frequency distribution of an attribute's measures around an average attribute value. 
D)  Formulates diagnostic signals that identify potential causes of product or service defects. 
E)  Plot of two measures that may be related.
F) Prioritizes the causes of problems or defects as bars of varying height, in order of frequency or size.
G) Reflects cause and effect and sequential linkages among process activities. 
A)  Shows a trend in variation in product or service attributes over time by reflecting measures of important quality features taken at defined points in time. 
B)  Describes variation in product or service attributes by measuring important quality features and comparing to upper and lower limits. 
C)  Displays the frequency distribution of an attribute's measures around an average attribute value. 
D)  Formulates diagnostic signals that identify potential causes of product or service defects. 
E)  Plot of two measures that may be related.
F) Prioritizes the causes of problems or defects as bars of varying height, in order of frequency or size.
G) Reflects cause and effect and sequential linkages among process activities.

Question 17

New product development time is the period between the first consideration of a product and its initial sale to the customer.

Accepted Answer

A) True 
 B)False

Question 18

Match the description of the tool used to assess quality to the appropriate name:
-Scatter Diagram

Accepted Answer

A)  Shows a trend in variation in product or service attributes over time by reflecting measures of important quality features taken at defined points in time. 
B)  Describes variation in product or service attributes by measuring important quality features and comparing to upper and lower limits. 
C)  Displays the frequency distribution of an attribute's measures around an average attribute value. 
D)  Formulates diagnostic signals that identify potential causes of product or service defects. 
E)  Plot of two measures that may be related.
F) Prioritizes the causes of problems or defects as bars of varying height, in order of frequency or size.
G) Reflects cause and effect and sequential linkages among process activities. 
A)  Shows a trend in variation in product or service attributes over time by reflecting measures of important quality features taken at defined points in time. 
B)  Describes variation in product or service attributes by measuring important quality features and comparing to upper and lower limits. 
C)  Displays the frequency distribution of an attribute's measures around an average attribute value. 
D)  Formulates diagnostic signals that identify potential causes of product or service defects. 
E)  Plot of two measures that may be related.
F) Prioritizes the causes of problems or defects as bars of varying height, in order of frequency or size.
G) Reflects cause and effect and sequential linkages among process activities.

Question 19

A Pareto chart prioritizes the causes of problems or defects as bars of varying height, in order of frequency or size.

Accepted Answer

A) True 
 B)False

Question 20

Effective production management results in higher cycle times and high throughput.

Accepted Answer

A) True 
 B)False

Match the description of the tool used to assess quality to the appropriate name: -Cause and effect diagram

Production cycle time does not factor in time to correct mistakes.

Which of the following is not a component of customer response time?

A statistical control chart displays customer response times against the historical mean and historical variation.

Use the following to answer questions: Le Francois Company developed the following information for its first quarter cost of quality report: -The total cost of prevention activities for Le Francois Company is:

Match the description of the tool used to assess quality to the appropriate name: -Pareto chart

Which of the following statements describes a histogram?

Engaging in marketing activities to improve a company's image that has been tarnished from poor product quality is an example of an external failure activity

Stonehouse Corporation developed the following information regarding quality for the first quarter of the year 2008: Required: Prepare a cost of quality report sorting costs by quality activity and expressing in relevant percentage terms.

Use the following to answer questions: Listed below are selected operating costs for Miskelly Products last month: -Miskelly's total prevention costs for the month were:

The diagnostic tool presented above is known as a: The quality control department at Conant Manufacturing Company prepared the following diagnostic tool regarding causes of quality problems:

Match the description of the tool used to assess quality to the appropriate name: -Control chart

Redoing customer service is classified as an external failure activity.

Match the description of the tool used to assess quality to the appropriate name: -Run chart

New product development time is the period between the first consideration of a product and its initial sale to the customer.

Match the description of the tool used to assess quality to the appropriate name: -Scatter Diagram

A Pareto chart prioritizes the causes of problems or defects as bars of varying height, in order of frequency or size.

Effective production management results in higher cycle times and high throughput.

Cost Management and Strategic Decision Making Evaluating Opportunities and Leading Change

Product Costing Systems: Concepts and Design Issues

Cost Accumulation for Job-Shop and Batch Production Operations

Activity-Based Costing Systems

Activity-Based Management

Managing Customer Profitability

Process-Costing Systems

Joint-Process Costing

Managing and Allocating Support-Service Costs

Cost Estimation

Financial and Cost-Volume-Profit Models

Cost Management and Decision Making

Strategic Issues in Making Long-Term Capital Investment Decisions

Budgeting and Financial Planning

Standard Costing, Variance Analysis, and Kaizen Costing

Flexible Budgets, Overhead Cost Management, and Activity-Based Budgeting

Organizational Design, Responsibility Accounting, and Evaluation of Divisional Performance

Transfer Pricing

Performance Measurement Systems Glossary Photo Credits

Filters

Exam 7: Managing Quality and Time to Create Value

Match the description of the tool used to assess quality to the appropriate name: -Cause and effect diagram

Production cycle time does not factor in time to correct mistakes.

Which of the following is not a component of customer response time?

A statistical control chart displays customer response times against the historical mean and historical variation.

Use the following to answer questions: Le Francois Company developed the following information for its first quarter cost of quality report: -The total cost of prevention activities for Le Francois Company is:

Match the description of the tool used to assess quality to the appropriate name: -Pareto chart

Which of the following statements describes a histogram?

Engaging in marketing activities to improve a company's image that has been tarnished from poor product quality is an example of an external failure activity

Stonehouse Corporation developed the following information regarding quality for the first quarter of the year 2008: Required: Prepare a cost of quality report sorting costs by quality activity and expressing in relevant percentage terms.

Use the following to answer questions: Listed below are selected operating costs for Miskelly Products last month: -Miskelly's total prevention costs for the month were:

The diagnostic tool presented above is known as a: The quality control department at Conant Manufacturing Company prepared the following diagnostic tool regarding causes of quality problems:

Match the description of the tool used to assess quality to the appropriate name: -Control chart

Redoing customer service is classified as an external failure activity.

Match the description of the tool used to assess quality to the appropriate name: -Run chart

New product development time is the period between the first consideration of a product and its initial sale to the customer.

Match the description of the tool used to assess quality to the appropriate name: -Scatter Diagram

A Pareto chart prioritizes the causes of problems or defects as bars of varying height, in order of frequency or size.

Effective production management results in higher cycle times and high throughput.

Cost Management and Strategic Decision Making Evaluating Opportunities and Leading Change

Product Costing Systems: Concepts and Design Issues

Cost Accumulation for Job-Shop and Batch Production Operations

Activity-Based Costing Systems

Activity-Based Management

Managing Customer Profitability

Process-Costing Systems

Joint-Process Costing

Managing and Allocating Support-Service Costs

Cost Estimation

Financial and Cost-Volume-Profit Models

Cost Management and Decision Making

Strategic Issues in Making Long-Term Capital Investment Decisions

Budgeting and Financial Planning

Standard Costing, Variance Analysis, and Kaizen Costing

Flexible Budgets, Overhead Cost Management, and Activity-Based Budgeting

Organizational Design, Responsibility Accounting, and Evaluation of Divisional Performance

Transfer Pricing

Performance Measurement Systems Glossary Photo Credits

Filters