Question 1

Which of the following is an intangible feature of a product or service?

Accepted Answer

A)  Performance 
B)  Adherence to specifications 
C)  Taste 
D)  Functionality 
A)  Performance 
B)  Adherence to specifications 
C)  Taste 
D)  Functionality

Question 2

The return-on-quality (ROQ) view of quality management assumes that there is a tradeoff between the costs and benefits of improving quality.

Accepted Answer

A) True 
 B)False

Question 3

A defect is an attribute of a product, either tangible or intangible, that falls short of customer expectations.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is not an internal failure activity?

Accepted Answer

A)  Disposal 
B)  Delaying processes 
C)  Warranty repairs 
D)  Reinspecting 
A)  Disposal 
B)  Delaying processes 
C)  Warranty repairs 
D)  Reinspecting

Question 5

Listed below are selected operating costs for Ortez Products last month:
  
Required:
a) Define internal and external failure activities
b) What was Ortez's total cost of internal failure and external failure for last month?

Accepted Answer

(a) Internal failure activities are requ

Question 6

Identify each of the following as Prevention Activities (P), Appraisal Activities (A), Internal Failure Activities (I) or External Failure Activities (E)
(1) Inspecting production materials upon delivery
(2) Designing products for manufacturability
(3) Process improvement
(4) Warranty repairs
(5) Lost sales
(6) Inspecting machines
(7) Rework
(8) Delaying processes
(9) Quality training
(10) Certifying suppliers

Accepted Answer

(1.) A, (2.) P, (3.)

Question 7

Customer response time:

Accepted Answer

A)  Is the time it takes for a customer to respond to a direct response advertisement 
B)  Is the period between the first consideration of a product and its initial sale to the customer 
C)  Is the amount of time between a customer's placing an order and the product's delivery to the customer 
D)  Is the same as cycle time 
A)  Is the time it takes for a customer to respond to a direct response advertisement 
B)  Is the period between the first consideration of a product and its initial sale to the customer 
C)  Is the amount of time between a customer's placing an order and the product's delivery to the customer 
D)  Is the same as cycle time

Question 8

Which of the following represents the throughput time ratio?

Accepted Answer

A)  Ratio of time spent adding customer value to products and services divided by total cycle time 
B)  Ratio of total cycle time divided by time spent adding customer value to products and services 
C)  Ratio of outcomes of a process divided by the amount of resources necessary to complete the process 
D)  Ratio of amount of resources necessary to complete a process divided by the outcomes of a process 
A)  Ratio of time spent adding customer value to products and services divided by total cycle time 
B)  Ratio of total cycle time divided by time spent adding customer value to products and services 
C)  Ratio of outcomes of a process divided by the amount of resources necessary to complete the process 
D)  Ratio of amount of resources necessary to complete a process divided by the outcomes of a process

Question 9

The Deming Prize is awarded to companies around the world that excel in quality improvement.

Accepted Answer

A) True 
 B)False

Question 10

The maximum and minimum desired levels on a control chart are called the upper control limit and the lower control limit.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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

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 13

Organizations usually sort costs of quality by quality activity and express them as a percentage of total costs.

Accepted Answer

A) True 
 B)False

Question 14

The highest possible value of the throughput time ratio is 200%.

Accepted Answer

A) True 
 B)False

Which of the following is an intangible feature of a product or service?

The return-on-quality (ROQ) view of quality management assumes that there is a tradeoff between the costs and benefits of improving quality.

A defect is an attribute of a product, either tangible or intangible, that falls short of customer expectations.

Which of the following is not an internal failure activity?

Listed below are selected operating costs for Ortez Products last month: Required: a) Define internal and external failure activities b) What was Ortez's total cost of internal failure and external failure for last month?

Customer response time:

Which of the following represents the throughput time ratio?

The Deming Prize is awarded to companies around the world that excel in quality improvement.

The maximum and minimum desired levels on a control chart are called the upper control limit and the lower control limit.

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

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

Organizations usually sort costs of quality by quality activity and express them as a percentage of total costs.

The highest possible value of the throughput time ratio is 200%.

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 is an intangible feature of a product or service?

The return-on-quality (ROQ) view of quality management assumes that there is a tradeoff between the costs and benefits of improving quality.

A defect is an attribute of a product, either tangible or intangible, that falls short of customer expectations.

Which of the following is not an internal failure activity?

Listed below are selected operating costs for Ortez Products last month: Required: a) Define internal and external failure activities b) What was Ortez's total cost of internal failure and external failure for last month?

Customer response time:

Which of the following represents the throughput time ratio?

The Deming Prize is awarded to companies around the world that excel in quality improvement.

The maximum and minimum desired levels on a control chart are called the upper control limit and the lower control limit.

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

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

Organizations usually sort costs of quality by quality activity and express them as a percentage of total costs.

The highest possible value of the throughput time ratio is 200%.

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