Question 1

Which of the following would be classified as an appraisal cost on a quality cost report?

Accepted Answer

A)  Quality improvement projects. 
B)  Supplies used in testing and inspection. 
C)  Audits of the effectiveness of the quality system. 
D)  Quality data gathering, analysis, and reporting. 
A)  Quality improvement projects. 
B)  Supplies used in testing and inspection. 
C)  Audits of the effectiveness of the quality system. 
D)  Quality data gathering, analysis, and reporting. B

Question 2

Which of the following would be classified as a prevention cost on a quality cost report?

Accepted Answer

A)  Debugging software errors. 
B)  Quality training. 
C)  Test and inspection of incoming materials. 
D)  Cost of field servicing and handling complaints. 
A)  Debugging software errors. 
B)  Quality training. 
C)  Test and inspection of incoming materials. 
D)  Cost of field servicing and handling complaints. B

Question 3

In preparing a quality cost report,the cost of employee's time spent in quality circles is part of:

Accepted Answer

A)  prevention costs. 
B)  appraisal costs. 
C)  internal failure costs. 
D)  external failure costs. 
A)  prevention costs. 
B)  appraisal costs. 
C)  internal failure costs. 
D)  external failure costs. A

Question 4

Which of the following would be classified as an appraisal cost on a quality cost report?

Accepted Answer

A)  Debugging software errors. 
B)  Supplies used in testing and inspection. 
C)  Re-entering data because of keying errors. 
D)  Warranty repairs and replacements. 
A)  Debugging software errors. 
B)  Supplies used in testing and inspection. 
C)  Re-entering data because of keying errors. 
D)  Warranty repairs and replacements.

Question 5

(Appendix 1A) Eaglin Company's quality cost report is to be based on the following data:
  
-What would be the total prevention cost appearing on the quality cost report?

Accepted Answer

A)  $55,000 
B)  $30,000 
C)  $62,000 
D)  $133,000 
A)  $55,000 
B)  $30,000 
C)  $62,000 
D)  $133,000

Question 6

An increase in appraisal costs in a quality improvement program would usually have the following initial effects on internal and external failure costs:

Accepted Answer

The answer of An increase in appraisal costs in a...

Question 7

Which of the following would be classified as an internal failure cost on a quality cost report?

Accepted Answer

A)  Rework labor and overhead. 
B)  Cost of field servicing and handling complaints. 
C)  Technical support provided to suppliers. 
D)  Lost sales arising from a reputation for poor quality. 
A)  Rework labor and overhead. 
B)  Cost of field servicing and handling complaints. 
C)  Technical support provided to suppliers. 
D)  Lost sales arising from a reputation for poor quality.

Question 8

Which of the following would be classified as an appraisal cost on a quality cost report?

Accepted Answer

A)  Returns and allowances arising from quality problems. 
B)  Downtime caused by quality problems. 
C)  Test and inspection of in-process goods. 
D)  Cost of field servicing and handling complaints. 
A)  Returns and allowances arising from quality problems. 
B)  Downtime caused by quality problems. 
C)  Test and inspection of in-process goods. 
D)  Cost of field servicing and handling complaints.

Question 9

(Appendix 1A) Fackler Company's quality cost report is to be based on the following data:
  
-What would be the total internal failure cost appearing on the quality cost report?

Accepted Answer

A)  $143,000 
B)  $146,000 
C)  $97,000 
D)  $43,000 
A)  $143,000 
B)  $146,000 
C)  $97,000 
D)  $43,000

Question 10

The four categories of quality costs in a quality cost report are:

Accepted Answer

A)  external failure, product liability, prevention, and carrying. 
B)  external failure, internal failure, prevention, and appraisal. 
C)  warranty, product liability, prevention, and appraisal. 
D)  warranty, product liability, training, and appraisal. 
A)  external failure, product liability, prevention, and carrying. 
B)  external failure, internal failure, prevention, and appraisal. 
C)  warranty, product liability, prevention, and appraisal. 
D)  warranty, product liability, training, and appraisal.

Question 11

Galben Company's quality cost report is to be based on the following data:
 $\begin{array}{lr}
\text {Quality data gathering, analysis, and reporting.  }&\$38,000\
\text {Supervision of testing and inspection activities. }&\$45,000\
\text {liability arising from defective products }&\$30,000\
\text {Technical support provided to suppliers. }&\$39,000\
\text {Disposal of defective products. }&\$72,000\
\text {Depreciation of test equipment }&\$55,000\
\text {Downtime caused by quality problems. }&\$96,000\
\text {  Test and inspection of in-process goods. }&\$69,000\
\text { Cost of field servicing and handling complaints}&\$52,000\
\end{array}$
 Required:
Prepare a Quality Cost Report in good form with separate sections for prevention costs,appraisal costs,internal failure costs,and external failure costs.

Accepted Answer

The answer of Galben Company's quality cost report is to...

Question 12

Which of the following would be classified as an external failure cost on a quality cost report?

Accepted Answer

A)  Depreciation of test equipment. 
B)  Repairs and replacements beyond the warranty period. 
C)  Supplies used in testing and inspection. 
D)  Re-entering data because of keying errors. 
A)  Depreciation of test equipment. 
B)  Repairs and replacements beyond the warranty period. 
C)  Supplies used in testing and inspection. 
D)  Re-entering data because of keying errors.

Question 13

(Appendix 1A) Eagleson Company's quality cost report is to be based on the following data:
  
-What would be the total appraisal cost appearing on the quality cost report?

Accepted Answer

A)  $93,000 
B)  $62,000 
C)  $39,000 
D)  $83,000 
A)  $93,000 
B)  $62,000 
C)  $39,000 
D)  $83,000

Question 14

Which of the following would be classified as an external failure cost on a quality cost report?

Accepted Answer

A)  Depreciation of test equipment. 
B)  Test and inspection of in-process goods. 
C)  Test and inspection of incoming materials. 
D)  Warranty repairs and replacements. 
A)  Depreciation of test equipment. 
B)  Test and inspection of in-process goods. 
C)  Test and inspection of incoming materials. 
D)  Warranty repairs and replacements.

Question 15

An increase in appraisal costs will usually result in an increase in:

Accepted Answer

A)  prevention costs. 
B)  internal failure costs. 
C)  external failure costs. 
D)  opportunity costs. 
A)  prevention costs. 
B)  internal failure costs. 
C)  external failure costs. 
D)  opportunity costs.

Question 16

Which of the following would be classified as an external failure cost on a quality cost report?

Accepted Answer

A)  Re-entering data because of keying errors. 
B)  Repairs and replacements beyond the warranty period. 
C)  Disposal of defective products. 
D)  Technical support provided to suppliers. 
A)  Re-entering data because of keying errors. 
B)  Repairs and replacements beyond the warranty period. 
C)  Disposal of defective products. 
D)  Technical support provided to suppliers.

Question 17

The most effective way to minimize quality costs while maintaining high quality is to avoid having quality problems in the first place.This is the reason for incurring appraisal costs.

Accepted Answer

A) True 
 B)False

Question 18

(Appendix 1A) Fackler Company's quality cost report is to be based on the following data:
  
-What would be the total prevention cost appearing on the quality cost report?

Accepted Answer

A)  $99,000 
B)  $67,000 
C)  $120,000 
D)  $79,000 
A)  $99,000 
B)  $67,000 
C)  $120,000 
D)  $79,000

Question 19

Harwood Company's quality cost report is to be based on the following data:
   Required:
Prepare a Quality Cost Report in good form with separate sections for prevention costs,appraisal costs,internal failure costs,and external failure costs.

Accepted Answer

The answer of Harwood Company's quality cost report is to...

Question 20

(Appendix 1A) Eaglin Company's quality cost report is to be based on the following data:
  
-What would be the total external failure cost appearing on the quality cost report?

Accepted Answer

A)  $259,000 
B)  $110,000 
C)  $119,000 
D)  $515,000 
A)  $259,000 
B)  $110,000 
C)  $119,000 
D)  $515,000

Exam 16: Cost of Quality

Which of the following would be classified as an appraisal cost on a quality cost report?

Which of the following would be classified as a prevention cost on a quality cost report?

In preparing a quality cost report,the cost of employee's time spent in quality circles is part of:

Which of the following would be classified as an appraisal cost on a quality cost report?

(Appendix 1A) Eaglin Company's quality cost report is to be based on the following data: -What would be the total prevention cost appearing on the quality cost report?

An increase in appraisal costs in a quality improvement program would usually have the following initial effects on internal and external failure costs:

Which of the following would be classified as an internal failure cost on a quality cost report?

Which of the following would be classified as an appraisal cost on a quality cost report?

(Appendix 1A) Fackler Company's quality cost report is to be based on the following data: -What would be the total internal failure cost appearing on the quality cost report?

The four categories of quality costs in a quality cost report are:

Which of the following would be classified as an external failure cost on a quality cost report?

(Appendix 1A) Eagleson Company's quality cost report is to be based on the following data: -What would be the total appraisal cost appearing on the quality cost report?

Which of the following would be classified as an external failure cost on a quality cost report?

An increase in appraisal costs will usually result in an increase in:

Which of the following would be classified as an external failure cost on a quality cost report?

The most effective way to minimize quality costs while maintaining high quality is to avoid having quality problems in the first place.This is the reason for incurring appraisal costs.

(Appendix 1A) Fackler Company's quality cost report is to be based on the following data: -What would be the total prevention cost appearing on the quality cost report?

Harwood Company's quality cost report is to be based on the following data: Required: Prepare a Quality Cost Report in good form with separate sections for prevention costs,appraisal costs,internal failure costs,and external failure costs.

(Appendix 1A) Eaglin Company's quality cost report is to be based on the following data: -What would be the total external failure cost appearing on the quality cost report?

Managerial Accounting and Cost Concepts

Job-Order Costing: Calculating Unit Production Costs

Job-Order Costing: Cost Flows and External Reporting

Process Costing

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Super-Variable Costing

Master Budgeting

Flexible Budgets and Performance Analysis

Standard Costs and Variances

Performance Measurement in Decentralized Organizations

Differential Analysis: The Key to Decision Making

Capital Budgeting Decisions

Statement of Cash Flows

Financial Statement Analysis

Activity-Based Absorption Costing

The Predetermined Overhead Rate and Capacity

Job-Order Costing: a Microsoft Excel-Based Approach

Fifo Method

Service Department Allocations

Analyzing Mixed Costs

Time-Driven Activity-Based Costing: a Microsoft Excel-Based Approach

Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

Standard Cost Systems: a Financial Reporting Perspective Using Microsoft Excel

Transfer Pricing

Service Department Charges

Pricing Decisions

The Concept of Present Value

Income Taxes and the Present Value Method

the Direct Method of Determining the Net Cash Provided by Operating Activities

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