Question 1

Which of the following is true of COQ measures?

Accepted Answer

A)  They forecast customer satisfaction and employee satisfaction, which are useful indicators of long-run performance. 
B)  They focus managers' attention on how poor quality affects operating income. 
C)  They direct attention to financial processes that help managers identify the precise problem areas that need improvement. 
D)  They provide immediate short-run feedback on whether quality-improvement efforts are succeeding. 
A)  They forecast customer satisfaction and employee satisfaction, which are useful indicators of long-run performance. 
B)  They focus managers' attention on how poor quality affects operating income. 
C)  They direct attention to financial processes that help managers identify the precise problem areas that need improvement. 
D)  They provide immediate short-run feedback on whether quality-improvement efforts are succeeding.

Question 2

Answer the following questions using the information below:
LaCrosse Products has a budget of $900,000 in 2015 for prevention costs. If it decides to automate a portion of its prevention activities, it will save $80,000 in variable costs. The new method will require $40,000 in training costs and $100,000 in annual equipment costs. Management is willing to adjust the budget for an amount up to the cost of the new equipment. The budgeted production level is 150,000 units.
Appraisal costs for the year are budgeted at $600,000. The new prevention procedures will save appraisal costs of $50,000. Internal failure costs average $15 per failed unit of finished goods. The internal failure rate is expected to be 3% of all completed items. The proposed changes will cut the internal failure rate by one-third. Internal failure units are destroyed. External failure costs average $54 per failed unit. The company's average external failures average 3% of units sold. The new proposal will reduce this rate by 50%. Assume all units produced are sold and there are no ending inventories.
-How much do external failure costs change if all changes are as anticipated with the new prevention procedures? Assume all units produced are sold and there are no ending inventories.

Accepted Answer

A)  $121,500 decrease 
B)  $121,500 increase 
C)  $243,000 decrease 
D)  None of these answers is correct. 
A)  $121,500 decrease 
B)  $121,500 increase 
C)  $243,000 decrease 
D)  None of these answers is correct.

Question 3

Answer the following questions using the information below:
Cysco Corp has a budget of $1,200,000 in 2015 for prevention costs. If it decides to automate a portion of its prevention activities, it will save $100,000 in variable costs. The new method will require $50,000 in training costs and $140,000 in annual equipment costs. Management is willing to adjust the budget for an amount up to the cost of the new equipment. The budgeted production level is 200,000 units.
Appraisal costs for the year are budgeted at $500,000. The new prevention procedures will save appraisal costs of $50,000. Internal failure costs average $30 per failed unit of finished goods. The internal failure rate is expected to be 5% of all completed items. The proposed changes will cut the internal failure rate by one-half. Internal failure units are destroyed. External failure costs average $50 per failed unit. The company's average external failures average 2.5% of units sold. The new proposal will reduce this rate to 1%. Assume all units produced are sold and there are no ending inventories.
-How much do external failure costs change if all the changes are as the new prevention procedures anticipated? Assume all units produced are sold and there are no ending inventories.

Accepted Answer

A)  $126,000 decrease 
B)  $150,000 decrease 
C)  $100,000 decrease 
D)  $122,400 decrease 
A)  $126,000 decrease 
B)  $150,000 decrease 
C)  $100,000 decrease 
D)  $122,400 decrease

Question 4

Statistical quality control includes a control chart that ________.

Accepted Answer

A)  graphs a series of random events of a process 
B)  plots each observation relative to specified ranges that represent the expected distribution 
C)  plots control observations over various periods of time 
D)  plots only those observations outside specified limits 
A)  graphs a series of random events of a process 
B)  plots each observation relative to specified ranges that represent the expected distribution 
C)  plots control observations over various periods of time 
D)  plots only those observations outside specified limits

Question 5

The manufacturing cycle including related delays can be reduced by ________.

Accepted Answer

A)  batching similar jobs together for processing 
B)  decreasing the capacity of a bottleneck resource 
C)  not setting up flexible manufacturing systems 
D)  increasing the time for setups and processing 
A)  batching similar jobs together for processing 
B)  decreasing the capacity of a bottleneck resource 
C)  not setting up flexible manufacturing systems 
D)  increasing the time for setups and processing

Question 6

Two common operational measures of time are customer-response time and on-time performance.

Accepted Answer

A) True 
 B)False

Question 7

The time it takes the marketing department to specify to the manufacturing department the exact requirements of the customer's order is referred as ________.

Accepted Answer

A)  receipt time 
B)  waiting time 
C)  delivery time 
D)  manufacturing cycle time 
A)  receipt time 
B)  waiting time 
C)  delivery time 
D)  manufacturing cycle time

Question 8

Customer response time comprises of ________.

Accepted Answer

A)  manufacturing cycle time and delivery time only 
B)  receipt time and manufacturing cycle time only 
C)  receipt time, manufacturing cycle time, and delivery time 
D)  manufacturing time and delivery time only 
A)  manufacturing cycle time and delivery time only 
B)  receipt time and manufacturing cycle time only 
C)  receipt time, manufacturing cycle time, and delivery time 
D)  manufacturing time and delivery time only

Question 9

A time driver is any factor that causes a change in the speed of an activity when the factor changes.

Accepted Answer

A) True 
 B)False

Question 10

A graph of a series of successive observations of a particular step,procedure,or operation taken at regular intervals of time is a ________.

Accepted Answer

A)  control chart 
B)  Pareto diagram 
C)  cause-and-effect diagram 
D)  fishbone diagrams 
A)  control chart 
B)  Pareto diagram 
C)  cause-and-effect diagram 
D)  fishbone diagrams

Question 11

The last step of the five-step decision making process is implementing the decision,evaluating performance,and learning.How can a balanced scorecard play a role in helping to assure this final step will be successful?

Accepted Answer

Using the balanced scorecard and trackin

Question 12

Product testing is an example 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

Question 13

When manufacturing cycle increases,________.

Accepted Answer

A)  sunk costs will decrease 
B)  opportunity costs will increase 
C)  opportunity costs will decrease 
D)  inventory carrying costs will increase 
A)  sunk costs will decrease 
B)  opportunity costs will increase 
C)  opportunity costs will decrease 
D)  inventory carrying costs will increase

Question 14

Answer the following questions using the information below:
Ventaz Corp has a variable demand. Historically, its demand has ranged from 30 to 50 windows per day with an average of 40. Alex works eight hours a day, five days a week. Each order is one window and each window takes 11 minutes.
-Alex plans to add doors to its product line and anticipates that they will average 3 doors per day.Each door takes 10 minutes to install. What is the average waiting time,in minutes,if Alex continues to be the only worker?

Accepted Answer

A)  237.0 minutes 
B)  337.0 minutes 
C)  257.0 minutes 
D)  720.0 minutes 
A)  237.0 minutes 
B)  337.0 minutes 
C)  257.0 minutes 
D)  720.0 minutes

Question 15

Match between columns
                        Premises: Retesting of reworked products
Downtime due to quality problems
Analysis of the cause of defects in production
Depreciation of test equipment
Warranty repairs
Lost sales arising from a reputation for poor quality
Quality circles
Rework direct manufacturing labor and overhead
Net cost of spoilage
Technical support provided to suppliers
Audits of the effectiveness of the quality system
Plant utilities in the inspection area
Reentering data because of keypunch errors

Accepted Answer

The Answer of Prevention costs and Appraisal costs and Internal is...

Question 16

Costs incurred in precluding the production of products that do not conform to specifications are ________.

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

Question 17

Manufacturing Cycle Efficiency (MCE)= Value-added Manufacturing Time divided by Manufacturing Cycle Time.

Accepted Answer

A) True 
 B)False

Question 18

Investing in a new equipment,such as flexible manufacturing systems that can be programmed to switch quickly from producing one product to producing another can decrease capacity as it would incur excess overhead costs.

Accepted Answer

A) True 
 B)False

Question 19

Discuss the methods used to identify quality problems.

Accepted Answer

1.A control chart is a graph of a series

Question 20

Inventory carrying costs equal the ________.

Accepted Answer

A)  opportunity costs of the investment tied up in inventory and the cost of manufacturing of goods 
B)  costs of storage only 
C)  opportunity costs of the investment tied up in inventory and the relevant costs of storage 
D)  historical costs and the relevant costs of storage 
A)  opportunity costs of the investment tied up in inventory and the cost of manufacturing of goods 
B)  costs of storage only 
C)  opportunity costs of the investment tied up in inventory and the relevant costs of storage 
D)  historical costs and the relevant costs of storage

Which of the following is true of COQ measures?

Statistical quality control includes a control chart that ________.

The manufacturing cycle including related delays can be reduced by ________.

Two common operational measures of time are customer-response time and on-time performance.

The time it takes the marketing department to specify to the manufacturing department the exact requirements of the customer's order is referred as ________.

Customer response time comprises of ________.

A time driver is any factor that causes a change in the speed of an activity when the factor changes.

A graph of a series of successive observations of a particular step,procedure,or operation taken at regular intervals of time is a ________.

The last step of the five-step decision making process is implementing the decision,evaluating performance,and learning.How can a balanced scorecard play a role in helping to assure this final step will be successful?

Product testing is an example of ________.

When manufacturing cycle increases,________.

Costs incurred in precluding the production of products that do not conform to specifications are ________.

Manufacturing Cycle Efficiency (MCE)= Value-added Manufacturing Time divided by Manufacturing Cycle Time.

Investing in a new equipment,such as flexible manufacturing systems that can be programmed to switch quickly from producing one product to producing another can decrease capacity as it would incur excess overhead costs.

Discuss the methods used to identify quality problems.

Inventory carrying costs equal the ________.

The Manager and Management Accounting

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Job Costing

Activity-Based Costing and Activity-Based Management

Master Budget and Responsibility Accounting

Flexible Budgets, direct-Cost Variances, and Management Control

Flexible Budgets, overhead Cost Variances, and Management Control

Inventory Costing and Capacity Analysis

Determining How Costs Behave

Decision Making and Relevant Information

Strategy, balanced Scorecard, and Strategic Profitability Analysis

Pricing Decisions and Cost Management

Cost Allocation, customer-Profitability Analysis, and Sales-Variance Analysis

Allocation of Support-Department Costs, common Costs, and Revenues

Cost Allocation: Joint Products and Byproducts

Process Costing

Spoilage, rework, and Scrap

Inventory Management, just-In-Time, and Simplified Costing Methods

Capital Budgeting and Cost Analysis

Management Control Systems, transfer Pricing, and Multinational Considerations

Performance Measurement, compensation, and Multinational Considerations

Filters

Exam 19: Balanced Scorecard: Quality and Time

Which of the following is true of COQ measures?

Statistical quality control includes a control chart that ________.

The manufacturing cycle including related delays can be reduced by ________.

Two common operational measures of time are customer-response time and on-time performance.

The time it takes the marketing department to specify to the manufacturing department the exact requirements of the customer's order is referred as ________.

Customer response time comprises of ________.

A time driver is any factor that causes a change in the speed of an activity when the factor changes.

A graph of a series of successive observations of a particular step,procedure,or operation taken at regular intervals of time is a ________.

The last step of the five-step decision making process is implementing the decision,evaluating performance,and learning.How can a balanced scorecard play a role in helping to assure this final step will be successful?

Product testing is an example of ________.

When manufacturing cycle increases,________.

Costs incurred in precluding the production of products that do not conform to specifications are ________.

Manufacturing Cycle Efficiency (MCE)= Value-added Manufacturing Time divided by Manufacturing Cycle Time.

Investing in a new equipment,such as flexible manufacturing systems that can be programmed to switch quickly from producing one product to producing another can decrease capacity as it would incur excess overhead costs.

Discuss the methods used to identify quality problems.

Inventory carrying costs equal the ________.

The Manager and Management Accounting

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Job Costing

Activity-Based Costing and Activity-Based Management

Master Budget and Responsibility Accounting

Flexible Budgets, direct-Cost Variances, and Management Control

Flexible Budgets, overhead Cost Variances, and Management Control

Inventory Costing and Capacity Analysis

Determining How Costs Behave

Decision Making and Relevant Information

Strategy, balanced Scorecard, and Strategic Profitability Analysis

Pricing Decisions and Cost Management

Cost Allocation, customer-Profitability Analysis, and Sales-Variance Analysis

Allocation of Support-Department Costs, common Costs, and Revenues

Cost Allocation: Joint Products and Byproducts

Process Costing

Spoilage, rework, and Scrap

Inventory Management, just-In-Time, and Simplified Costing Methods

Capital Budgeting and Cost Analysis

Management Control Systems, transfer Pricing, and Multinational Considerations

Performance Measurement, compensation, and Multinational Considerations

Filters