Question 1

The "cost of conformance" includes:

Accepted Answer

A) Prevention costs and appraisal costs. 
B) Internal failure costs and external failure costs. 
C) Prevention costs and internal failure costs. 
D) Appraisal costs and internal failure costs. 
E) Prevention costs and external failure costs. 
A) Prevention costs and appraisal costs. 
B) Internal failure costs and external failure costs. 
C) Prevention costs and internal failure costs. 
D) Appraisal costs and internal failure costs. 
E) Prevention costs and external failure costs.

Question 2

Quality costs for services include:

Accepted Answer

A) Prevention costs and appraisal costs only. 
B) Prevention costs,appraisal costs and internal failure costs only. 
C) Appraisal costs and internal failure costs only. 
D) Prevention costs,appraisal costs,internal failure costs,and external failure costs. 
E) External failure costs only. 
A) Prevention costs and appraisal costs only. 
B) Prevention costs,appraisal costs and internal failure costs only. 
C) Appraisal costs and internal failure costs only. 
D) Prevention costs,appraisal costs,internal failure costs,and external failure costs. 
E) External failure costs only.

Question 3

In a Cost of Quality (COQ)report,sales returns and allowances due to quality deficiency would be classified as:

Accepted Answer

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

Question 4

Lean manufacturing principles are derived in large part from the Toyota Production System (TPS).Which of the following is not associated with TPS?

Accepted Answer

A) Use of batch processing. 
B) Development of long-term relationships with key suppliers. 
C) Emphasis on balanced,continuous-flow manufacturing. 
D) Continuous improvement and elimination of waste in the system. 
E) Use of flexible manufacturing systems (FMS). 
A) Use of batch processing. 
B) Development of long-term relationships with key suppliers. 
C) Emphasis on balanced,continuous-flow manufacturing. 
D) Continuous improvement and elimination of waste in the system. 
E) Use of flexible manufacturing systems (FMS).

Question 5

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 6

The four categories of Cost of Quality (COQ)are prevention,appraisal,internal failure,and external failure.Assume your cost management instructor has given you an assignment related to COQ.You are to relate each of the cost categories above to the preparation of the class project,which is a study of an actual firm's cost management system.The typical student spends 16 hours researching the firm,five hours writing the report,and three hours in revising and presenting the report to the class.
Required:
(1)Give an example of prevention,appraisal,internal failure,and external failure costs you might encounter in writing and presenting your report.(Example: "Draw up a time budget with necessary deadlines before starting the report" is an example of a prevention cost. )
(2)Which of the four category examples you gave for Part (a)above has the greatest cost? What has the least cost? What has the greatest benefit? What has the least benefit? (Example: "Not saving word processing on disk or hard drive" is an example of greatest cost in terms of time. )

Accepted Answer

Feedback: (1)Examples: Prevention cost-

Question 7

Which one of the following is not a category of the Cost of Quality (COQ)reporting model?

Accepted Answer

A) Value-stream cost. 
B) External failure cost. 
C) Internal failure cost. 
D) Detection cost. 
E) Prevention cost. 
A) Value-stream cost. 
B) External failure cost. 
C) Internal failure cost. 
D) Detection cost. 
E) Prevention cost.

Question 8

Chapter 17 presents a comprehensive framework that can be used as the basis for creating a comprehensive system for managing and controlling quality.
Required: Provide an overview of the key elements of the framework presented in the chapter.

Accepted Answer

Feedback: The primary elements of the c

Question 9

Which of the following statements regarding the meaning of "quality" is true?

Accepted Answer

A) Total quality can be decomposed into two broad components: features and performance. 
B) "Features," as used in the discussion of quality,refers to actual functionality of a product. 
C) Another name for product features is performance quality. 
D) Cost-of-Quality (COQ)reporting is most helpful in managing design quality. 
E) Quality of design is defined as the difference between design specifications and customer desires. 
A) Total quality can be decomposed into two broad components: features and performance. 
B) "Features," as used in the discussion of quality,refers to actual functionality of a product. 
C) Another name for product features is performance quality. 
D) Cost-of-Quality (COQ)reporting is most helpful in managing design quality. 
E) Quality of design is defined as the difference between design specifications and customer desires.

Question 10

The following data of causes of absenteeism for a fellow student for the year just completed were available.

Accepted Answer

Required:(1)Use the above information to

Question 11

Regardless of the differences in format,a common feature that should be present in any Cost-of-Quality (COQ)Report is that the report:

Accepted Answer

A) Promotes the management and control of quality-related costs. 
B) Classifies costs by product line. 
C) Classifies costs by cost center or profit center. 
D) Classifies costs by behavior (e.g. ,fixed versus variable). 
E) Classifies costs by the external value stream. 
A) Promotes the management and control of quality-related costs. 
B) Classifies costs by product line. 
C) Classifies costs by cost center or profit center. 
D) Classifies costs by behavior (e.g. ,fixed versus variable). 
E) Classifies costs by the external value stream.

Question 12

One of the concerns with moving to lean manufacturing is the fact that conventional accounting approaches may discourage such a move.These deficiencies relate to the lag in recognizing financial benefits from the move to lean.
Required: According to critics,what are the three primary reasons why improvements in financial results,after adopting lean manufacturing,typically appear later in conventional accounting statements than the operating improvements from implementing lean manufacturing?

Accepted Answer

Feedback: (1)In a lean manufacturing en

Question 13

Which of the following statements about product quality is not true?

Accepted Answer

A) In almost all cases detecting and fixing quality problems before delivering to customers are far less expensive than dealing with quality failures in the field after delivery has been made to the customers. 
B) In general,designing quality into products is far less expensive than trying to detect quality problems during production. 
C) Quality failure costs should include the possible opportunity cost of lost future sales. 
D) The most expensive cost to the firm for a quality failure in the field is the cost of emergency service to fix the problem or replace the product. 
E) The cost of fixing quality problems after delivery to the customer is likely to exceed both the cost of designing quality into the product and the cost of detecting quality defects during production. 
A) In almost all cases detecting and fixing quality problems before delivering to customers are far less expensive than dealing with quality failures in the field after delivery has been made to the customers. 
B) In general,designing quality into products is far less expensive than trying to detect quality problems during production. 
C) Quality failure costs should include the possible opportunity cost of lost future sales. 
D) The most expensive cost to the firm for a quality failure in the field is the cost of emergency service to fix the problem or replace the product. 
E) The cost of fixing quality problems after delivery to the customer is likely to exceed both the cost of designing quality into the product and the cost of detecting quality defects during production.

Question 14

ISO 14000:

Accepted Answer

A) Provides a set of quality standards that relate to environmental management. 
B) Is required under current International Financial Reporting Standards (IFRS). 
C) Is a requirement for receipt of the Baldrige Quality Award in the U.S. 
D) Provides general standards for quality assurance by companies and organizations. 
A) Provides a set of quality standards that relate to environmental management. 
B) Is required under current International Financial Reporting Standards (IFRS). 
C) Is a requirement for receipt of the Baldrige Quality Award in the U.S. 
D) Provides general standards for quality assurance by companies and organizations.

Question 15

In a Cost of Quality (COQ)framework,rework costs incurred before shipment of product are considered:

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 16

A graphical method that organizes a chain of causes and effects to sort out root causes and identify relationships between causes or variables is a(n):

Accepted Answer

A) Control chart. 
B) Pareto diagram. 
C) Histogram. 
D) Fish-bone (i.e. ,Ishikawa)diagram. 
E) Brainstorm report. 
A) Control chart. 
B) Pareto diagram. 
C) Histogram. 
D) Fish-bone (i.e. ,Ishikawa)diagram. 
E) Brainstorm report.

Question 17

The term performance quality refers to:

Accepted Answer

A) The difference between customer expectations (for attributes,services,functionality,etc. )and product design. 
B) The gap between product design specifications and actual performance of the product. 
C) Customer satisfaction with the total experience of a product or service. 
D) The gap between actual performance of a product and customer expectations. 
E) Costs related to meeting customer demands and expectations. 
A) The difference between customer expectations (for attributes,services,functionality,etc. )and product design. 
B) The gap between product design specifications and actual performance of the product. 
C) Customer satisfaction with the total experience of a product or service. 
D) The gap between actual performance of a product and customer expectations. 
E) Costs related to meeting customer demands and expectations.

Question 18

The desired target quality characteristic of a product of Hanson Component Manufacturing is 0.5.The customer-service manager knows that customers are likely to complain when the specification is off the desired quality characteristic by more than 0.025.On average it costs the firm $2,000 to handle and resolve each complaint.The production manager of the Hanson Manufacturing suggests that the company test the product more thoroughly before shipping.The cost of additional testing and adjustments is estimated at $30 per unit.For Hanson,what is the value of k,the cost coefficient in the Taguchi Loss Function?

Accepted Answer

A) $5. 
B) $2,000. 
C) $80,000. 
D) $1,600,000. 
E) $3,200,000. 
A) $5. 
B) $2,000. 
C) $80,000. 
D) $1,600,000. 
E) $3,200,000.

Question 19

A tool that identifies 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 20

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 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 sales calls. 
D) Design re-engineering costs. 
E) The cost of implementing a statistical process control (SP
C) system.

The "cost of conformance" includes:

Quality costs for services include:

In a Cost of Quality (COQ)report,sales returns and allowances due to quality deficiency would be classified as:

Lean manufacturing principles are derived in large part from the Toyota Production System (TPS).Which of the following is not associated with TPS?

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

Which one of the following is not a category of the Cost of Quality (COQ)reporting model?

Chapter 17 presents a comprehensive framework that can be used as the basis for creating a comprehensive system for managing and controlling quality. Required: Provide an overview of the key elements of the framework presented in the chapter.

Which of the following statements regarding the meaning of "quality" is true?

The following data of causes of absenteeism for a fellow student for the year just completed were available.

Regardless of the differences in format,a common feature that should be present in any Cost-of-Quality (COQ)Report is that the report:

Which of the following statements about product quality is not true?

ISO 14000:

In a Cost of Quality (COQ)framework,rework costs incurred before shipment of product are considered:

A graphical method that organizes a chain of causes and effects to sort out root causes and identify relationships between causes or variables is a(n):

The term performance quality refers to:

A tool that identifies potential causes of failures or defects is a:

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

Cost Management and Strategy

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

Profit Planning: Cost-Volume-Profit 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 and 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

Management Compensation, Business Analysis, and Business Valuation

Filters

Exam 17: The Management and Control of Quality

The "cost of conformance" includes:

Quality costs for services include:

In a Cost of Quality (COQ)report,sales returns and allowances due to quality deficiency would be classified as:

Lean manufacturing principles are derived in large part from the Toyota Production System (TPS).Which of the following is not associated with TPS?

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

Which one of the following is not a category of the Cost of Quality (COQ)reporting model?

Chapter 17 presents a comprehensive framework that can be used as the basis for creating a comprehensive system for managing and controlling quality. Required: Provide an overview of the key elements of the framework presented in the chapter.

Which of the following statements regarding the meaning of "quality" is true?

The following data of causes of absenteeism for a fellow student for the year just completed were available.

Regardless of the differences in format,a common feature that should be present in any Cost-of-Quality (COQ)Report is that the report:

Which of the following statements about product quality is not true?

ISO 14000:

In a Cost of Quality (COQ)framework,rework costs incurred before shipment of product are considered:

A graphical method that organizes a chain of causes and effects to sort out root causes and identify relationships between causes or variables is a(n):

The term performance quality refers to:

A tool that identifies potential causes of failures or defects is a:

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

Cost Management and Strategy

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

Profit Planning: Cost-Volume-Profit 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 and 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

Management Compensation, Business Analysis, and Business Valuation

Filters