Question 1

Which of the following statements about quality is False?

Accepted Answer

A)  The maximum quality level is almost always lower than the optimum quality level 
B)  Total delight represents a condition when a customer receives a product or service far exceeding his or her expectations of quality 
C)  Return on quality is the view that assumes there is a tradeoff between the costs and benefits of improving quality 
D)  Optimum quality level of products and services maximizes profits rather than quality 
A)  The maximum quality level is almost always lower than the optimum quality level 
B)  Total delight represents a condition when a customer receives a product or service far exceeding his or her expectations of quality 
C)  Return on quality is the view that assumes there is a tradeoff between the costs and benefits of improving quality 
D)  Optimum quality level of products and services maximizes profits rather than quality

Question 2

Companies using just-in-time (JIT) inventory systems will generally have:

Accepted Answer

A)  Higher inventory turnover and lower total sales than traditional companies 
B)  Higher inventory turnover and higher total sales than traditional companies 
C)  Lower inventory turnover and higher sales per employee than traditional companies 
D)  Higher inventory turnover and higher sales per employee than traditional companies 
A)  Higher inventory turnover and lower total sales than traditional companies 
B)  Higher inventory turnover and higher total sales than traditional companies 
C)  Lower inventory turnover and higher sales per employee than traditional companies 
D)  Higher inventory turnover and higher sales per employee than traditional companies

Question 3

Total factor productivity is the value of goods and services divided by the cost of providing them.

Accepted Answer

A) True 
 B)False

Question 4

A pattern of extreme jumps in behavior can be caused by:

Accepted Answer

A)  Worker fatigue 
B)  Learning and improved use of resources 
C)  Change of employees 
D)  Periodic maintenance or training 
A)  Worker fatigue 
B)  Learning and improved use of resources 
C)  Change of employees 
D)  Periodic maintenance or training

Question 5

Two generally accepted quality dimensions are product or service attributes and profitability from an individual customer.

Accepted Answer

A) True 
 B)False

Question 6

Listed below are selected operating costs for Hershey Products last month:
  
Required: Compute Hershey's total prevention and appraisal costs for last month.

Accepted Answer

The answer of Listed below are selected operating costs for...

Question 7

Which of the following is not an external failure activity?

Accepted Answer

A)  Resolving customer complaints 
B)  Settling product liability 
C)  Disposing of scrap 
D)  Field replacements 
A)  Resolving customer complaints 
B)  Settling product liability 
C)  Disposing of scrap 
D)  Field replacements

Question 8

Which of the following is likely to be found in a "push"
Manufacturing environment?

Accepted Answer

A)  Production bottlenecks 
B)  Little or no finished goods inventory 
C)  Obsolete inventory 
D)  Both A and C 
A)  Production bottlenecks 
B)  Little or no finished goods inventory 
C)  Obsolete inventory 
D)  Both A and C

Question 9

Which of the following statements describes a control chart?

Accepted Answer

A)  Shows trends in variation in product or service attributes over time by reflecting measures of important 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 features 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 important 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 features 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 10

Field testing products in use at customer sites is classified as a prevention activity.

Accepted Answer

A) True 
 B)False

Question 11

Companies are continuously seeking ways to improve quality of production and reduce costs. One of the areas is to work with suppliers to improve the quality and reliability of parts and products shipped. In an article entitled "In Defense of Activity-Based Cost Management,"
Robert S. Kaplan says:
An ABC model can play a major role in improving supplier relationships as well. These relationships must be a vital part of any quality and cycle-time improvement program. A key insight is to use ABC to distinguish between low-price and low-cost suppliers. Traditional cost accounting, with its emphasis on purchase price variances, encourages purchasing people to continually scan the population of potential suppliers to obtain low price quotations. Most companies have learned, the hard way, that many of their low-price suppliers are actually extremely high-cost suppliers. (Source: Management Accounting: November, 1992)
(a) Explain what Kaplan means by "many of their low-price suppliers are actually extremely high-cost suppliers."
(b)What general prevention and appraisal activities can be used to improve the quality and reliability of parts and products shipped from suppliers?

Required:

Accepted Answer

(a) A low price supplier can be a high c

Question 12

Brice Corporation suspects that improper information given to customers by customer service is related to the time spent by employees in responding to customer service calls. The quality tool that would be most useful to Brice in diagnosing this relationship is:

Accepted Answer

A)  Flowchart 
B)  Pareto chart 
C)  Cause-and-effect diagram 
D)  Scatter diagram 
A)  Flowchart 
B)  Pareto chart 
C)  Cause-and-effect diagram 
D)  Scatter diagram

Question 13

Customer satisfaction is the degree to which expectations of attributes, customer service, and price have been or are expected to be met.

Accepted Answer

A) True 
 B)False

Question 14

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

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

Shaw Company is trying to identify the most frequent causes of its quality problems so that it can concentrate on those that offer the greatest potential for improvement. The quality tool that would be most useful to Shaw is:

Accepted Answer

A)  Flowchart 
B)  Pareto chart 
C)  Cause-and-effect diagram 
D)  Run chart 
A)  Flowchart 
B)  Pareto chart 
C)  Cause-and-effect diagram 
D)  Run chart

Question 16

Which of the following is an appraisal activity?

Accepted Answer

A)  Disposing of Scrap 
B)  Performing Rework 
C)  Customer-complaint resolution 
D)  Inspecting processes 
A)  Disposing of Scrap 
B)  Performing Rework 
C)  Customer-complaint resolution 
D)  Inspecting processes

Question 17

Total factor productivity is measured by dividing total cost of providing goods and services by the value of goods and services.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following statements is True about the return-on-quality (ROQ) view of quality management

Accepted Answer

A)  Assumes that improvements in quality will always result in improved organizational performance 
B)  Assumes that there is a trade-off between the costs of quality and the benefits of improving quality 
C)  Has a goal of exceeding customers' quality expectations 
D)  Assumes that customers are willing to pay a premium for higher quality products and services 
A)  Assumes that improvements in quality will always result in improved organizational performance 
B)  Assumes that there is a trade-off between the costs of quality and the benefits of improving quality 
C)  Has a goal of exceeding customers' quality expectations 
D)  Assumes that customers are willing to pay a premium for higher quality products and services

Question 19

Just-in-time concepts do not apply to service organizations.

Accepted Answer

A) True 
 B)False

Question 20

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 external failure activities at Le Francois is:

Accepted Answer

A)  $420,560 
B)  $15,960 
C)  $117,600 
D)  $175,000 
A)  $420,560 
B)  $15,960 
C)  $117,600 
D)  $175,000

Which of the following statements about quality is False?

Companies using just-in-time (JIT) inventory systems will generally have:

Total factor productivity is the value of goods and services divided by the cost of providing them.

A pattern of extreme jumps in behavior can be caused by:

Two generally accepted quality dimensions are product or service attributes and profitability from an individual customer.

Listed below are selected operating costs for Hershey Products last month: Required: Compute Hershey's total prevention and appraisal costs for last month.

Which of the following is not an external failure activity?

Which of the following is likely to be found in a "push" Manufacturing environment?

Which of the following statements describes a control chart?

Field testing products in use at customer sites is classified as a prevention activity.

Brice Corporation suspects that improper information given to customers by customer service is related to the time spent by employees in responding to customer service calls. The quality tool that would be most useful to Brice in diagnosing this relationship is:

Customer satisfaction is the degree to which expectations of attributes, customer service, and price have been or are expected to be met.

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

Shaw Company is trying to identify the most frequent causes of its quality problems so that it can concentrate on those that offer the greatest potential for improvement. The quality tool that would be most useful to Shaw is:

Which of the following is an appraisal activity?

Total factor productivity is measured by dividing total cost of providing goods and services by the value of goods and services.

Which of the following statements is True about the return-on-quality (ROQ) view of quality management

Just-in-time concepts do not apply to service organizations.

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 external failure activities at Le Francois is:

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

Which of the following statements about quality is False?

Companies using just-in-time (JIT) inventory systems will generally have:

Total factor productivity is the value of goods and services divided by the cost of providing them.

A pattern of extreme jumps in behavior can be caused by:

Two generally accepted quality dimensions are product or service attributes and profitability from an individual customer.

Listed below are selected operating costs for Hershey Products last month: Required: Compute Hershey's total prevention and appraisal costs for last month.

Which of the following is not an external failure activity?

Which of the following is likely to be found in a "push" Manufacturing environment?

Which of the following statements describes a control chart?

Field testing products in use at customer sites is classified as a prevention activity.

Brice Corporation suspects that improper information given to customers by customer service is related to the time spent by employees in responding to customer service calls. The quality tool that would be most useful to Brice in diagnosing this relationship is:

Customer satisfaction is the degree to which expectations of attributes, customer service, and price have been or are expected to be met.

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

Shaw Company is trying to identify the most frequent causes of its quality problems so that it can concentrate on those that offer the greatest potential for improvement. The quality tool that would be most useful to Shaw is:

Which of the following is an appraisal activity?

Total factor productivity is measured by dividing total cost of providing goods and services by the value of goods and services.

Which of the following statements is True about the return-on-quality (ROQ) view of quality management

Just-in-time concepts do not apply to service organizations.

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 external failure activities at Le Francois is:

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