Question 1

Recalls are fairly common events for automobile manufacturers.The costs of recalling and repairing a car create
$\begin{array}{ll}
\underline{\text { Assets available for use} } & \underline{ \text {external falure costs } }&\underline{\text { parevention costs }} \
\end{array}$

Accepted Answer

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

Question 2

Productivity is measured by the quantity of good output generated from a specific amount of input during a time period.

Accepted Answer

A) True 
 B)False

Question 3

Porter Company's cost of compliance is $58,000.Appraisal cost is $21,000 and failure cost is $32,000.The company's total quality cost is

Accepted Answer

A) $53,000. 
B) $79,000. 
C) $90,000. 
D) $111,000. 
A) $53,000. 
B) $79,000. 
C) $90,000. 
D) $111,000.

Question 4

Replacing a product after it has been sold is an external failure cost.

Accepted Answer

A) True 
 B)False

Question 5

Total quality management requires that an organization analyze the costs and benefits of each of its customer segments.

Accepted Answer

A) True 
 B)False

Question 6

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.Determine the total quality cost.

Accepted Answer

Refer to Mobile Corporation.De

Question 7

ISO 9000 registration is required for regulated products sold in the United States.

Accepted Answer

A) True 
 B)False

Question 8

Production quality is affected by

Accepted Answer

A) worker productivity. 
B) the amount of failure costs incurred. 
C) worker skill level. 
D) just-in-time suppliers. 
A) worker productivity. 
B) the amount of failure costs incurred. 
C) worker skill level. 
D) just-in-time suppliers.

Recalls are fairly common events for automobile manufacturers.The costs of recalling and repairing a car create

Productivity is measured by the quantity of good output generated from a specific amount of input during a time period.

Porter Company's cost of compliance is $58,000.Appraisal cost is $21,000 and failure cost is $32,000.The company's total quality cost is

Replacing a product after it has been sold is an external failure cost.

Total quality management requires that an organization analyze the costs and benefits of each of its customer segments.

ISO 9000 registration is required for regulated products sold in the United States.

Production quality is affected by

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

Recalls are fairly common events for automobile manufacturers.The costs of recalling and repairing a car create

Productivity is measured by the quantity of good output generated from a specific amount of input during a time period.

Porter Company's cost of compliance is $58,000.Appraisal cost is $21,000 and failure cost is $32,000.The company's total quality cost is

Replacing a product after it has been sold is an external failure cost.

Total quality management requires that an organization analyze the costs and benefits of each of its customer segments.

ISO 9000 registration is required for regulated products sold in the United States.

Production quality is affected by

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