Question 1

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

Accepted Answer

A)  Net cost of spoilage. 
B)  Supervision of testing and inspection activities. 
C)  Liability arising from defective products. 
D)  Technical support provided to suppliers. 
A)  Net cost of spoilage. 
B)  Supervision of testing and inspection activities. 
C)  Liability arising from defective products. 
D)  Technical support provided to suppliers.

Question 2

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

Accepted Answer

A)  Audits of the effectiveness of the quality system. 
B)  Systems development. 
C)  Quality improvement projects. 
D)  Debugging software errors. 
A)  Audits of the effectiveness of the quality system. 
B)  Systems development. 
C)  Quality improvement projects. 
D)  Debugging software errors.

Question 3

(Appendix 1A) Fabrick 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)  $122,000 
B)  $174,000 
C)  $104,000 
D)  $102,000 
A)  $122,000 
B)  $174,000 
C)  $104,000 
D)  $102,000

Question 4

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

Accepted Answer

A)  Repairs and replacements beyond the warranty period. 
B)  Technical support provided to suppliers. 
C)  Quality improvement projects. 
D)  Rework labor and overhead. 
A)  Repairs and replacements beyond the warranty period. 
B)  Technical support provided to suppliers. 
C)  Quality improvement projects. 
D)  Rework labor and overhead.

Question 5

(Appendix 1A) Fabrick 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)  $94,000 
B)  $480,000 
C)  $104,000 
D)  $306,000 
A)  $94,000 
B)  $480,000 
C)  $104,000 
D)  $306,000

Question 6

Adolphson Corporation has provided the following summary of its quality cost report for the last two years:
  .
On the basis of this report,which one of the following statements is most likely correct?

Accepted Answer

A)  An increase in prevention and appraisal costs resulted in fewer defects, and therefore, resulted in a decrease in internal and external failure costs. 
B)  A decrease in internal and external failure costs resulted in less need for prevention and appraisal costs. 
C)  Quality costs such as scrap and rework decreased by 48%. 
D)  Quality costs such as returns and repairs under warranty decreased by 40%. 
A)  An increase in prevention and appraisal costs resulted in fewer defects, and therefore, resulted in a decrease in internal and external failure costs. 
B)  A decrease in internal and external failure costs resulted in less need for prevention and appraisal costs. 
C)  Quality costs such as scrap and rework decreased by 48%. 
D)  Quality costs such as returns and repairs under warranty decreased by 40%.

Question 7

(Appendix 1A) Circle K Toys, Inc. manufactures toys and children's clothing and sells these products to retail outlets. The following costs were incurred in performing quality activities at Circle K during the year:
  
-What is the total of the prevention costs for Circle K?

Accepted Answer

A)  $394,000 
B)  $409,000 
C)  $455,000 
D)  $470,000 
A)  $394,000 
B)  $409,000 
C)  $455,000 
D)  $470,000

Question 8

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

Accepted Answer

A)  Disposal of defective products. 
B)  Net cost of spoilage. 
C)  Depreciation of test equipment. 
D)  Technical support provided to suppliers. 
A)  Disposal of defective products. 
B)  Net cost of spoilage. 
C)  Depreciation of test equipment. 
D)  Technical support provided to suppliers.

Question 9

(Appendix 1A) Eagleson 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)  $107,000 
B)  $125,000 
C)  $84,000 
D)  $89,000 
A)  $107,000 
B)  $125,000 
C)  $84,000 
D)  $89,000

Question 10

(Appendix 1A) Fabrick 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)  $212,000 
B)  $166,000 
C)  $122,000 
D)  $114,000 
A)  $212,000 
B)  $166,000 
C)  $122,000 
D)  $114,000

Question 11

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

Question 12

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

Accepted Answer

A)  Final product testing and inspection. 
B)  Warranty repairs and replacements. 
C)  Depreciation of test equipment. 
D)  Debugging software errors. 
A)  Final product testing and inspection. 
B)  Warranty repairs and replacements. 
C)  Depreciation of test equipment. 
D)  Debugging software errors.

Question 13

To minimize its total quality costs,a company should usually try to redistribute its quality costs more toward prevention and appraisal.

Accepted Answer

A) True 
 B)False

Question 14

Quality of conformance refers to the extent to which a product offered by one company is similar to products offered by other companies.

Accepted Answer

A) True 
 B)False

Question 15

(Appendix 1A) Eagleson 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)  $262,000 
B)  $155,000 
C)  $112,000 
D)  $451,000 
A)  $262,000 
B)  $155,000 
C)  $112,000 
D)  $451,000

Question 16

The cost of quality training 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 17

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)  Technical support provided to suppliers. 
C)  Quality improvement projects. 
D)  Systems development. 
A)  Rework labor and overhead. 
B)  Technical support provided to suppliers. 
C)  Quality improvement projects. 
D)  Systems development.

Question 18

Rigoletto Company's quality cost report is to be based on the following data:
 $\begin{array}{lr}
\text {Lost sales due to poor quality.  }&\$24,000\
\text {Test and inspection of incoming materials. }&\$94,000\
\text {Rework labor and overhead. }&\$55,000\
\text {Test and inspection of in-process goods  }&\$32,000\
\text {Product recalls }&\$47,000\
\text {Quality data gathering, analysis, and reporting }&\$15,000\
\text {  Disposal of defective products. }&\$88,000\
\text {Maintenance of test equipment.  }&\$58,000\
\text {Quality engineering }&\$98,000\
\end{array}$
 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 Rigoletto Company's quality cost report is to...

Question 19

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

Question 20

The cost of testing incoming materials received from suppliers 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.

Exam 16: Cost of Quality

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

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

(Appendix 1A) Fabrick 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?

(Appendix 1A) Fabrick 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?

Adolphson Corporation has provided the following summary of its quality cost report for the last two years: . On the basis of this report,which one of the following statements is most likely correct?

(Appendix 1A) Circle K Toys, Inc. manufactures toys and children's clothing and sells these products to retail outlets. The following costs were incurred in performing quality activities at Circle K during the year: -What is the total of the prevention costs for Circle K?

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

(Appendix 1A) Fabrick 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?

Gadsen 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.

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

To minimize its total quality costs,a company should usually try to redistribute its quality costs more toward prevention and appraisal.

Quality of conformance refers to the extent to which a product offered by one company is similar to products offered by other companies.

(Appendix 1A) Eagleson 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?

The cost of quality training would be classified as a(n):

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

Hartnett 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.

The cost of testing incoming materials received from suppliers would be classified as a(n):

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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