Question 1

The most visible embodiment of total quality management in the United States is

Accepted Answer

A) being awarded the Deming Prize. 
B) achieving ISO 9000 certification. 
C) meeting industry standards. 
D) receiving the Baldrige AwarD. 
A) being awarded the Deming Prize. 
B) achieving ISO 9000 certification. 
C) meeting industry standards. 
D) receiving the Baldrige AwarD.

Question 2

The ISO 9000 standards

Accepted Answer

A) indicate which companies' products are better than those of competitors. 
B) allow management to decide how to meet the standards for quality assurance. 
C) include specific directives about product design,material procurement,and environmental responsibilities. 
D) compose a program of quality assurance under which companies are registered by the International Organizational for Standardization. 
A) indicate which companies' products are better than those of competitors. 
B) allow management to decide how to meet the standards for quality assurance. 
C) include specific directives about product design,material procurement,and environmental responsibilities. 
D) compose a program of quality assurance under which companies are registered by the International Organizational for Standardization.

Question 3

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 quality cost is

Accepted Answer

A) $15,000. 
B) $15,750. 
C) $28,500. 
D) $11,250. 
A) $15,000. 
B) $15,750. 
C) $28,500. 
D) $11,250.

Question 4

What is the relationship between the incurrence of the various types of quality costs and the quantity of output that meets specification?

Accepted Answer

As the number of conforming units increa

Question 5

Conducting a quality audit is a prevention cost.

Accepted Answer

A) True 
 B)False

Question 6

The ISO 9000 series refers to

Accepted Answer

A) international guidelines for quality standards. 
B) provisions regarding benchmarking activities in the European Union. 
C) guidelines for appropriate expenditures on the various categories of quality costs. 
D) all of the above. 
A) international guidelines for quality standards. 
B) provisions regarding benchmarking activities in the European Union. 
C) guidelines for appropriate expenditures on the various categories of quality costs. 
D) all of the above.

Question 7

Which of the following are undesirable from a consumer perspective but are frequently needed?

Accepted Answer

A) value-neutral activities 
B) value-added activities 
C) non-value-added activities 
D) none of the above 
A) value-neutral activities 
B) value-added activities 
C) non-value-added activities 
D) none of the above

Question 8

Process benchmarking creates the risk for a company to become stagnant.

Accepted Answer

A) True 
 B)False

Question 9

Inspection of incoming inventory is a value-added activity.

Accepted Answer

A) True 
 B)False

Question 10

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 profit lost by selling defective units to Pittman Company totals $1,440.The total rework cost for 700 units is $28,000.The difference between the profit earned on a good unit and a defective unit is $12.How many total defective units did StatPro Corporation produce?

Accepted Answer

A) 120 
B) 740 
C) 736 
D) 820 
A) 120 
B) 740 
C) 736 
D) 820

Question 11

Reworking a product is an appraisal cost.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is not one of the three objectives of a quality program?

Accepted Answer

A) Product quality should be consistent to always meet the purchaser's need(s). 
B) A quality program should give management confidence that the quality is and will be at a constant level. 
C) A quality program should give customers confidence that the intended quality will be achieved in products. 
D) Product quality should always vary because customers change their wants and needs over time. 
A) Product quality should be consistent to always meet the purchaser's need(s). 
B) A quality program should give management confidence that the quality is and will be at a constant level. 
C) A quality program should give customers confidence that the intended quality will be achieved in products. 
D) Product quality should always vary because customers change their wants and needs over time.

Question 13

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 profit lost by selling defective units not reworked is

Accepted Answer

A) $25,000. 
B) $15,000. 
C) $18,750. 
D) $3,750. 
A) $25,000. 
B) $15,000. 
C) $18,750. 
D) $3,750.

Question 14

Costs of monitoring and compensating for mistakes not eliminated through prevention activities are referred to as ______________________________.

Accepted Answer

The answer of Costs of monitoring and compensating for mistakes...

Question 15

Which of the following is not a critical element in a total quality management system?

Accepted Answer

A) employee involvement 
B) activity-based costing 
C) continuous improvement 
D) problem prevention emphasis 
A) employee involvement 
B) activity-based costing 
C) continuous improvement 
D) problem prevention emphasis

Question 16

Storage of unneeded inventory is a non-value added item.

Accepted Answer

A) True 
 B)False

Question 17

A company will not achieve world-class status unless a quality focus

Accepted Answer

A) allows that company to achieve one or more major quality awards. 
B) becomes an integral part of the organization's culture. 
C) emphasizes the elimination of all quality costs for compliance and noncompliance. 
D) has been mandated by management for workers to pursue. 
A) allows that company to achieve one or more major quality awards. 
B) becomes an integral part of the organization's culture. 
C) emphasizes the elimination of all quality costs for compliance and noncompliance. 
D) has been mandated by management for workers to pursue.

Question 18

Benchmarking
$\begin{array}{ll}
\text { identifies "best-in-class" companies } &\text { analyze sthe "negative gap"} \

\end{array}$

Accepted Answer

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

Question 19

Results benchmarking creates the risk for a company to become stagnant.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is the first element of knowledge needed by a company wanting to pursue total quality management?

Accepted Answer

A) what the company's customers want 
B) who the company's customers are 
C) how the company's processes are designed 
D) what the components of the company's product are 
A) what the company's customers want 
B) who the company's customers are 
C) how the company's processes are designed 
D) what the components of the company's product are

The most visible embodiment of total quality management in the United States is

The ISO 9000 standards

What is the relationship between the incurrence of the various types of quality costs and the quantity of output that meets specification?

Conducting a quality audit is a prevention cost.

The ISO 9000 series refers to

Which of the following are undesirable from a consumer perspective but are frequently needed?

Process benchmarking creates the risk for a company to become stagnant.

Inspection of incoming inventory is a value-added activity.

Reworking a product is an appraisal cost.

Which of the following is not one of the three objectives of a quality program?

Costs of monitoring and compensating for mistakes not eliminated through prevention activities are referred to as ______________________________.

Which of the following is not a critical element in a total quality management system?

Storage of unneeded inventory is a non-value added item.

A company will not achieve world-class status unless a quality focus

Benchmarking identifies "best-in-class" companies analyze sthe "negative gap"

Results benchmarking creates the risk for a company to become stagnant.

Which of the following is the first element of knowledge needed by a company wanting to pursue total quality management?

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

The most visible embodiment of total quality management in the United States is

The ISO 9000 standards

What is the relationship between the incurrence of the various types of quality costs and the quantity of output that meets specification?

Conducting a quality audit is a prevention cost.

The ISO 9000 series refers to

Which of the following are undesirable from a consumer perspective but are frequently needed?

Process benchmarking creates the risk for a company to become stagnant.

Inspection of incoming inventory is a value-added activity.

Reworking a product is an appraisal cost.

Which of the following is not one of the three objectives of a quality program?

Costs of monitoring and compensating for mistakes not eliminated through prevention activities are referred to as ______________________________.

Which of the following is not a critical element in a total quality management system?

Storage of unneeded inventory is a non-value added item.

A company will not achieve world-class status unless a quality focus

Benchmarking identifies "best-in-class" companies analyze sthe "negative gap"

Results benchmarking creates the risk for a company to become stagnant.

Which of the following is the first element of knowledge needed by a company wanting to pursue total quality management?

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