Question 1

In a typical Cost of Quality (COQ) report, instructor fees for quality training would be classified as:

Accepted Answer

A) Prevention costs. 
B) Retention costs. 
C) Appraisal costs. 
D) Internal failure costs. 
E) External failure costs. 
A) Prevention costs. 
B) Retention costs. 
C) Appraisal costs. 
D) Internal failure costs. 
E) External failure costs.

Question 2

As noted in the text, a comprehensive framework for managing and controlling quality contains both financial and non-financial performance indicators (metrics). Provide four (4) examples of internal quality metrics and four (4) examples of external (i.e., customer-based) non-financial quality metrics.

Accepted Answer

Answer may vary
Feedback:
1. Nonfinancia

Question 3

All of the following costs are generally included in a Cost-of-Quality (COQ) report except:

Accepted Answer

A) Warranty claims. 
B) Forgone contribution margin on lost sales. 
C) The cost of making sales calls. 
D) Design re-engineering costs. 
E) The cost of implementing a statistical process control (SP
C)  system. 
A) Warranty claims. 
B) Forgone contribution margin on lost sales. 
C) The cost of making sales calls. 
D) Design re-engineering costs. 
E) The cost of implementing a statistical process control (SP
C)  system.

Question 4

A graphical representation of the variation in a given set of data is a(n):

Accepted Answer

A) Control chart. 
B) Pareto diagram. 
C) Histogram. 
D) Ishikawa diagram. 
E) Cause-and-effect diagram. 
A) Control chart. 
B) Pareto diagram. 
C) Histogram. 
D) Ishikawa diagram. 
E) Cause-and-effect diagram.

Question 5

A tool that can be used to identify potential causes of failures or defects is a:

Accepted Answer

A) Control chart. 
B) Pareto diagram. 
C) Fishbone (i.e., Ishikawa) diagram. 
D) Run chart. 
E) Six Sigma report. 
A) Control chart. 
B) Pareto diagram. 
C) Fishbone (i.e., Ishikawa) diagram. 
D) Run chart. 
E) Six Sigma report.

Question 6

Cari and Jeremy just bought a bed and breakfast inn at a very attractive price. The business had been doing poorly. Before they reopened the inn for business, they attended a seminar on operating a high-quality business. Now that they are ready to open the inn, they need some advice on quality costs and the management and control of quality.
Required:
1. Identify and define each of the four categories in a typical Cost-of-Quality (COQ) reporting system.
2. For the identified business (bed and breakfast) provide three examples of costs within each of the four COQ categories.

Accepted Answer

Answer may vary
Feedback:
1. Prevention

Question 7

According to the text, which of the following items is not considered a broad guideline that can be used in the construction of a comprehensive framework (or system) for the management and control of performance quality?

Accepted Answer

A) Use of target costing. 
B) Knowledge of underlying business processes. 
C) Customer-based viewpoint. 
D) Inclusion of non-financial performance indicators. 
E) Reporting of quality cost information, based on a cost-of-quality classification framework. 
A) Use of target costing. 
B) Knowledge of underlying business processes. 
C) Customer-based viewpoint. 
D) Inclusion of non-financial performance indicators. 
E) Reporting of quality cost information, based on a cost-of-quality classification framework.

In a typical Cost of Quality (COQ) report, instructor fees for quality training would be classified as:

All of the following costs are generally included in a Cost-of-Quality (COQ) report except:

A graphical representation of the variation in a given set of data is a(n):

A tool that can be used to identify potential causes of failures or defects is a:

According to the text, which of the following items is not considered a broad guideline that can be used in the construction of a comprehensive framework (or system) for the management and control of performance quality?

Short-Term Profit Planning: Cost-Volume-Profit CVP Analysis

Implementing Strategy: The Value Chain, the Balanced Scorecard, and the Strategy Map

Basic Cost Management Concepts

Job Costing

Activity-Based Costing and Customer Profitability Analysis

Process Costing

Cost Allocation: Departments, Joint Products, and By-Products

Cost Estimation

Short-Term Profit Planning: Cost-Volume-Profit Cvp Analysis

Strategy and the Master Budget

Decision Making With a Strategic Emphasis

Strategy and the Analysis of Capital Investments

Cost Planning for the Product Life Cycle: Target Costing, Theory of Constraints, and Strategic Pricing

Operational Performance Measurement: Sales, Direct-Cost Variances, and the Role of Nonfinancial Performance Measures

Operational Performance Measurement: Indirect-Cost Variances and Resource-Capacity Management

Operational Performance Measurement: Further Analysis of Productivity and Sales

Strategic Performance Measurement: Cost Centers, Profit Centers, and the Balanced Scorecard

Strategic Performance Measurement: Investment Centers and Transfer Pricing

Management Compensation, Business Analysis, and Business Valuation

Filters

Exam 17: The Management and Control of Quality

In a typical Cost of Quality (COQ) report, instructor fees for quality training would be classified as:

All of the following costs are generally included in a Cost-of-Quality (COQ) report except:

A graphical representation of the variation in a given set of data is a(n):

A tool that can be used to identify potential causes of failures or defects is a:

According to the text, which of the following items is not considered a broad guideline that can be used in the construction of a comprehensive framework (or system) for the management and control of performance quality?

Short-Term Profit Planning: Cost-Volume-Profit CVP Analysis

Implementing Strategy: The Value Chain, the Balanced Scorecard, and the Strategy Map

Basic Cost Management Concepts

Job Costing

Activity-Based Costing and Customer Profitability Analysis

Process Costing

Cost Allocation: Departments, Joint Products, and By-Products

Cost Estimation

Short-Term Profit Planning: Cost-Volume-Profit Cvp Analysis

Strategy and the Master Budget

Decision Making With a Strategic Emphasis

Strategy and the Analysis of Capital Investments

Cost Planning for the Product Life Cycle: Target Costing, Theory of Constraints, and Strategic Pricing

Operational Performance Measurement: Sales, Direct-Cost Variances, and the Role of Nonfinancial Performance Measures

Operational Performance Measurement: Indirect-Cost Variances and Resource-Capacity Management

Operational Performance Measurement: Further Analysis of Productivity and Sales

Strategic Performance Measurement: Cost Centers, Profit Centers, and the Balanced Scorecard

Strategic Performance Measurement: Investment Centers and Transfer Pricing

Management Compensation, Business Analysis, and Business Valuation

Filters