Question 1

Comparing the way a "best-in-class" company performs a specific activity (such as distribution)is called

Accepted Answer

A) process benchmarking. 
B) results benchmarking. 
C) total quality management benchmarking. 
D) SPC benchmarking. 
A) process benchmarking. 
B) results benchmarking. 
C) total quality management benchmarking. 
D) SPC benchmarking. A

Question 2

The balanced scorecard can be used to provide information on quality in an organization.

Accepted Answer

A) True 
 B)False  True

Question 3

What is continuous improvement? How does it relate to total quality management?

Accepted Answer

Continuous improvement is behavior that encourages employees,either production or service,to perform their tasks better as time passes.Thus,because product or service quality levels improve,continuous improvement is directly related to TQM.Employees are also encouraged to "group think" and brainstorm in quality circles to recognize and correct problems in the business environment.

Question 4

Quality control places the primary responsibility for product or service quality on the provider.

Accepted Answer

A) True 
 B)False

Question 5

Outdoor Oasis,Inc.
Outdoor Oasis,Inc.has just finished its first year of business.Outdoor Oasis,Inc.makes decorative outdoor furniture.The firm manufactured 2,500 pieces of furniture during the year: 2,400 were sold at garden centers for $456,000;100 pieces were defective and could only be sold as scrap metal (25 pounds each and can be sold for $2.50 per pound).No defective units could be reworked.During the year the following costs were incurred:
 $\begin{array}{l}
\text { Total rppraisal cost }&\$ 9,000 \
\text { Total prevention cost }&25,700 \
\text { Total production cost } &250,000\
\text { Total selling and administrative cost }&70,000

\end{array}$

Refer to Outdoor Oasis,Inc.Compute the total quality cost incurred by the company during the first year of operations.

Accepted Answer

Refer to Outdoor Oasis,Inc.Compute the t

Question 6

A total quality system should be designed to promote a reorientation of thinking from an emphasis on

Accepted Answer

A) internal quality improvements to an emphasis on external benchmarking. 
B) the planning process to an emphasis on the performance evaluation process. 
C) inspection to an emphasis on prevention. 
D) process benchmarking to an emphasis on results benchmarking. 
A) internal quality improvements to an emphasis on external benchmarking. 
B) the planning process to an emphasis on the performance evaluation process. 
C) inspection to an emphasis on prevention. 
D) process benchmarking to an emphasis on results benchmarking.

Question 7

Strategic benchmarking is industry specific in its approach.

Accepted Answer

A) True 
 B)False

Question 8

Mobile Corporation
Mobile Corporation is a manufacturer of electronic blood pressure monitors for
home use.The following is a summary of quality costs for the first year of operations.
 $\begin{array}{ll}
\text { Total defective units } & 1,500 \
\text { Number of units reworked } & 800 \
\text { Number of customer units returned } & 200 \
\text { Profit for a good unit } & \$ 50 \
\text { Profit for a defective unit } & \$ 30 \
\text { Cost to rework a defective urit } & \$ 12 \
\text { Cost of a returned unit } & \$ 20 \
\text { Total prevention cost } & \$ 17,500 \
\text { Total rppraisal cost } & \$ 9,500
\end{array}$
 
Refer to Mobile Corporation.What is the total failure cost?

Accepted Answer

F = Z + R + W = $14,

Question 9

Discuss increased competition and improved problem solving skills as they relate to benchmarking.

Accepted Answer

Increased competition and improved probl

Question 10

The number of product defects discovered by consumers is what kind of performance indicator?
$\begin{array}{ll}
\underline{\text { Qualitative} } &\underline{\text {Quantitative }} &\underline{\text {Financial }} &\underline{\text {Noufinashcial }}   \

\end{array}$

Accepted Answer

A) yes no no yes 
B) no yes no yes 
C) no yes yes no 
D) yes no no yes. 
A) yes no no yes 
B) no yes no yes 
C) no yes yes no 
D) yes no no yes.

Question 11

Discuss the concept of total quality management.

Accepted Answer

TQM is a company-wide quality system tha

Question 12

A total quality system should place an emphasis on prevention and continuous improvement.

Accepted Answer

A) True 
 B)False

Question 13

Product quality includes all of the following except

Accepted Answer

A) appeal. 
B) performance. 
C) durability. 
D) price. 
A) appeal. 
B) performance. 
C) durability. 
D) price.

Question 14

Which of the following are categories judged for the Baldrige Award?
                                   $\begin{array}{ll}
\text { Busuness } &\text {Use of SPC and } &\text {Customer }  \
\end{array}$
      $\begin{array}{ll}
\underline{\text { Benchmarking }} &\underline{\text {results} }&\underline{\text {	Pareto analysis }}&\underline{\text {focus }}&\underline{\text {Leadership}}  \

\end{array}$

Accepted Answer

A) no yes no yes yes 
B) yes yes yes yes yes 
C) yes yes no yes no 
D) no no no no no 
A) no yes no yes yes 
B) yes yes yes yes yes 
C) yes yes no yes no 
D) no no no no no

Question 15

Benchmarking against direct competitors creates the risk of

Accepted Answer

A) creating products or services with identical specifications. 
B) becoming stagnant relative to process improvements. 
C) being taken over by the competitors to prevent a loss of ideas. 
D) all of the above. 
A) creating products or services with identical specifications. 
B) becoming stagnant relative to process improvements. 
C) being taken over by the competitors to prevent a loss of ideas. 
D) all of the above.

Question 16

Control charts are appropriate devices in

Accepted Answer

A) total quality control. 
B) statistical process control. 
C) total quality management. 
D) all of the above. 
A) total quality control. 
B) statistical process control. 
C) total quality management. 
D) all of the above.

Question 17

Grade refers to a product meeting the highest number of a customer's needs at the lowest possible cost.

Accepted Answer

A) True 
 B)False

Question 18

Process benchmarking is concerned with how top-ranked companies achieve their results.

Accepted Answer

A) True 
 B)False

Question 19

A benchmarking process that focuses on how best-in-class companies achieve their results is referred to as ___________________________________.

Accepted Answer

process be

Question 20

StatPro Corporation
StatPro Corporation is a manufacturer of a versatile statistical calculator.The following information is a summary of defective and returned units for the previous year.
$\begin{array}{ll}
\text { Total defective units } & 1,000 \
\text { Number of units reworked } & 750 \
\text { Number of customer units returned } & 150 \
\text { Profit for a good unit } & \$ 40 \
\text { Profit for a defective unit } & \$ 25 \
\text { Cost to rework a defective unit } & \$ 10 \
\text { Cost of a returned unit } & \$ 15 \
\text { Total prevention cost } & \$ 10,000 \
\text { Total appraisal cost } & \$ 5,000
\end{array}$

Refer to StatPro Corporation.The total failure cost is

Accepted Answer

A) $15,000. 
B) $13,500. 
C) $11,250. 
D) $8,250. 
A) $15,000. 
B) $13,500. 
C) $11,250. 
D) $8,250.

Comparing the way a "best-in-class" company performs a specific activity (such as distribution)is called

The balanced scorecard can be used to provide information on quality in an organization.

What is continuous improvement? How does it relate to total quality management?

Quality control places the primary responsibility for product or service quality on the provider.

A total quality system should be designed to promote a reorientation of thinking from an emphasis on

Strategic benchmarking is industry specific in its approach.

Discuss increased competition and improved problem solving skills as they relate to benchmarking.

The number of product defects discovered by consumers is what kind of performance indicator?

Discuss the concept of total quality management.

A total quality system should place an emphasis on prevention and continuous improvement.

Product quality includes all of the following except

Which of the following are categories judged for the Baldrige Award? Busuness Use of SPC and Customer

Benchmarking against direct competitors creates the risk of

Control charts are appropriate devices in

Grade refers to a product meeting the highest number of a customer's needs at the lowest possible cost.

Process benchmarking is concerned with how top-ranked companies achieve their results.

A benchmarking process that focuses on how best-in-class companies achieve their results is referred to as ___________________________________.

Introduction to Cost Accounting

Cost Terminology and Cost Behaviors

Predetermined Overhead Rates, Flexible Budgets, and Absorptionvariable Costing

Activity-Based Management and Activity-Based Costing

Job Order Costing

Process Costing

Standard Costing and Variance Analysis

The Master Budget

Break-Even Point and Cost-Volume-Profit Analysis

Relevant Information for Decision Making

Allocation of Joint Costs and Accounting for By-Products

Introduction to Cost Management Systems

Responsibility Accounting,support Department Allocations,and Transfer Pricing

Performance Measurement, balanced Scorecards, and Performance Rewards

Capital Budgeting

Managing Costs and Uncertainty

Inventory and Production Management

Emerging Management Practices

Filters

Exam 17: Implementing Quality Concepts

Comparing the way a "best-in-class" company performs a specific activity (such as distribution)is called

The balanced scorecard can be used to provide information on quality in an organization.

What is continuous improvement? How does it relate to total quality management?

Quality control places the primary responsibility for product or service quality on the provider.

A total quality system should be designed to promote a reorientation of thinking from an emphasis on

Strategic benchmarking is industry specific in its approach.

Discuss increased competition and improved problem solving skills as they relate to benchmarking.

The number of product defects discovered by consumers is what kind of performance indicator?

Discuss the concept of total quality management.

A total quality system should place an emphasis on prevention and continuous improvement.

Product quality includes all of the following except

Which of the following are categories judged for the Baldrige Award? Busuness Use of SPC and Customer

Benchmarking against direct competitors creates the risk of

Control charts are appropriate devices in

Grade refers to a product meeting the highest number of a customer's needs at the lowest possible cost.

Process benchmarking is concerned with how top-ranked companies achieve their results.

A benchmarking process that focuses on how best-in-class companies achieve their results is referred to as ___________________________________.

Introduction to Cost Accounting

Cost Terminology and Cost Behaviors

Predetermined Overhead Rates, Flexible Budgets, and Absorptionvariable Costing

Activity-Based Management and Activity-Based Costing

Job Order Costing

Process Costing

Standard Costing and Variance Analysis

The Master Budget

Break-Even Point and Cost-Volume-Profit Analysis

Relevant Information for Decision Making

Allocation of Joint Costs and Accounting for By-Products

Introduction to Cost Management Systems

Responsibility Accounting,support Department Allocations,and Transfer Pricing

Performance Measurement, balanced Scorecards, and Performance Rewards

Capital Budgeting

Managing Costs and Uncertainty

Inventory and Production Management

Emerging Management Practices

Filters