Question 1

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

Accepted Answer

A)  Cost of field servicing and handling complaints. 
B)  Warranty repairs and replacements. 
C)  Systems development. 
D)  Rework labor and overhead. 
A)  Cost of field servicing and handling complaints. 
B)  Warranty repairs and replacements. 
C)  Systems development. 
D)  Rework labor and overhead.

Question 2

Inspection of products would be classified as a(n):

Accepted Answer

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

Question 3

Galaviz 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 Galaviz Company's quality cost report is to...

Question 4

In classifying the costs of quality at a company that manufactures sonar equipment,which of the following is considered an external failure cost?

Accepted Answer

A)  the net cost of scrap and spoilage incurred during production. 
B)  the cost of repairs and replacements made during the warranty period. 
C)  the cost of debugging software errors found in the sonar equipment during inspection at the plant. 
D)  both B and C above. 
E)  none of the above. 
A)  the net cost of scrap and spoilage incurred during production. 
B)  the cost of repairs and replacements made during the warranty period. 
C)  the cost of debugging software errors found in the sonar equipment during inspection at the plant. 
D)  both B and C above. 
E)  none of the above.

Question 5

(Appendix 1A) Fabrick 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)  $101,000. 
B)  $72,000 
C)  $73,000 
D)  $101,000 
A)  $101,000. 
B)  $72,000 
C)  $73,000 
D)  $101,000

Question 6

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

Accepted Answer

A)  Returns and allowances arising from quality problems. 
B)  Quality improvement projects. 
C)  Quality engineering. 
D)  Net cost of spoilage. 
A)  Returns and allowances arising from quality problems. 
B)  Quality improvement projects. 
C)  Quality engineering. 
D)  Net cost of spoilage.

Question 7

The costs of lost sales arising from poor quality are always included in quality cost reports.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A)  Maintenance of test equipment. 
B)  Re-entering data because of keying errors. 
C)  Debugging software errors. 
D)  Warranty repairs and replacements. 
A)  Maintenance of test equipment. 
B)  Re-entering data because of keying errors. 
C)  Debugging software errors. 
D)  Warranty repairs and replacements.

Question 9

(Appendix 1A) Eaglin 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)  $194,000 
B)  $175,000 
C)  $112,000 
D)  $167,000 
A)  $194,000 
B)  $175,000 
C)  $112,000 
D)  $167,000

Question 10

(Appendix 1A) Eaglin 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)  $119,000 
B)  $149,000 
C)  $156,000 
D)  $140,000 
A)  $119,000 
B)  $149,000 
C)  $156,000 
D)  $140,000

Question 11

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

Accepted Answer

A)  Reentering data because of keying errors. 
B)  Customer returns arising from quality problems. 
C)  Test and inspection of in-process goods. 
D)  Rework labor and overhead. 
A)  Reentering data because of keying errors. 
B)  Customer returns arising from quality problems. 
C)  Test and inspection of in-process goods. 
D)  Rework labor and overhead.

Question 12

(Appendix 1A) Fackler 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)  $57,000 
B)  $62,000 
C)  $205,000 
D)  $424,000 
A)  $57,000 
B)  $62,000 
C)  $205,000 
D)  $424,000

Question 13

External failure costs are limited to the costs of repairing defective products that are under warranty.

Accepted Answer

A) True 
 B)False

Question 14

(Appendix 1A) Eagleson 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)  $155,000 
B)  $150,000 
C)  $96,000 
D)  $107,000 
A)  $155,000 
B)  $150,000 
C)  $96,000 
D)  $107,000

Question 15

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

Accepted Answer

A)  Quality improvement projects. 
B)  Supervision of testing and inspection activities. 
C)  Debugging software errors. 
D)  Warranty repairs and replacements. 
A)  Quality improvement projects. 
B)  Supervision of testing and inspection activities. 
C)  Debugging software errors. 
D)  Warranty repairs and replacements.

Question 16

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

Accepted Answer

A)  Final product testing and inspection. 
B)  Net cost of spoilage. 
C)  Repairs and replacements beyond the warranty period. 
D)  Rework labor and overhead. 
A)  Final product testing and inspection. 
B)  Net cost of spoilage. 
C)  Repairs and replacements beyond the warranty period. 
D)  Rework labor and overhead.

Question 17

Quality is achieved when a product or service contains all of the features that a customer would expect,and when that product or
service performs in such a way that the customer is satisfied.

Accepted Answer

A) True 
 B)False

Question 18

A quality cost report is usually compiled by the purchasing department to show the added costs of purchasing higher quality components.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A)  Final product testing and inspection. 
B)  Disposal of defective products. 
C)  Supervision of testing and inspection activities. 
D)  Cost of field servicing and handling complaints. 
A)  Final product testing and inspection. 
B)  Disposal of defective products. 
C)  Supervision of testing and inspection activities. 
D)  Cost of field servicing and handling complaints.

Question 20

(Appendix 1A) Fackler 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)  $130,000 
B)  $152,000 
C)  $146,000 
D)  $219,000 
A)  $130,000 
B)  $152,000 
C)  $146,000 
D)  $219,000

Exam 16: Cost of Quality

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

Inspection of products would be classified as a(n):

Galaviz 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.

In classifying the costs of quality at a company that manufactures sonar equipment,which of the following is considered an external failure cost?

(Appendix 1A) Fabrick 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?

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

The costs of lost sales arising from poor quality are always included in quality cost reports.

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 appraisal cost appearing on the quality cost report?

(Appendix 1A) Eaglin 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?

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

External failure costs are limited to the costs of repairing defective products that are under warranty.

(Appendix 1A) Eagleson 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?

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?

Quality is achieved when a product or service contains all of the features that a customer would expect,and when that product or service performs in such a way that the customer is satisfied.

A quality cost report is usually compiled by the purchasing department to show the added costs of purchasing higher quality components.

Which of the following would be classified as an external failure 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 appraisal 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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