Question 1

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

Accepted Answer

A)  Supplies used in testing and inspection. 
B)  Debugging software errors. 
C)  Quality improvement projects. 
D)  Lost sales arising from a reputation for poor quality. 
A)  Supplies used in testing and inspection. 
B)  Debugging software errors. 
C)  Quality improvement projects. 
D)  Lost sales arising from a reputation for poor quality.

Question 2

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

Accepted Answer

A)  Test and inspection of in-process goods. 
B)  Technical support provided to suppliers. 
C)  Debugging software errors. 
D)  Audits of the effectiveness of the quality system. 
A)  Test and inspection of in-process goods. 
B)  Technical support provided to suppliers. 
C)  Debugging software errors. 
D)  Audits of the effectiveness of the quality system.

Question 3

The cost of labor time required to rework defective units 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 4

(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 internal failure costs for Circle K?

Accepted Answer

A)  $ 53,000 
B)  $ 99,000 
C)  $517,000 
D)  $ 38,000 
A)  $ 53,000 
B)  $ 99,000 
C)  $517,000 
D)  $ 38,000

Question 5

ISO 9000 standards were established to make sure that all consumer products incorporate specific safety features.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A)  Technical support provided to suppliers. 
B)  Net cost of spoilage. 
C)  Disposal of defective products. 
D)  Debugging software errors. 
A)  Technical support provided to suppliers. 
B)  Net cost of spoilage. 
C)  Disposal of defective products. 
D)  Debugging software errors.

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 appraisal cost on a quality cost report?

The cost of labor time required to rework defective units would be classified as a(n):

(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 internal failure costs for Circle K?

ISO 9000 standards were established to make sure that all consumer products incorporate specific safety features.

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

Filters

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 appraisal cost on a quality cost report?

The cost of labor time required to rework defective units would be classified as a(n):

(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 internal failure costs for Circle K?

ISO 9000 standards were established to make sure that all consumer products incorporate specific safety features.

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

Filters