XYZ Cosmetics,Inc.,has developed a set of nonfinancial measures to evaluate on-time product delivery performance for one of its best-selling cosmetics.The following data have been generated for the past four weeks: $\begin{array}{llll} & \text { Purchase } & \text { Production } & \\ \text { Week } & \text { Order } & \text { Cycle } & \text { Delivery } \\ & \text { Lead Time } & \text { Time } & \text { Time }\\ 1 & 2.4 \text { days } & 3.5 \text { days } & 4.0 \text { days } \\ 2 & 2.0 \text { days } & 3.1 \text { days } & 3.6 \text { days } \\ 3 & 2.4 \text { days } & 3.3 \text { days } & 3.4 \text { days } \\ 4 & 2.5 \text { days } & 3.2 \text { days } & 3.3 \text { days } \end{array}$ Compute total delivery cycle time for Week 2.

A) 3.0 days B) 6.4 days C) 8.7 days D) 7.0 days A) 3.0 days B) 6.4 days C) 8.7 days D) 7.0 days

Internal reports on quality at the Acme Publishing Company generated the following information for the Trade Division for the first three months of the year: $\begin{array}{lr} \text { Total sales } & \$ 1,000,000 \\ \text { Costs of quality: } & \\ \text { Prevention } & 50,000 \\ \text { Appraisal } & 47,000 \\ \text { Internal failure } & 36,000 \\ \text { External failure } & 64,000 \end{array}$ Compute the ratio of costs of nonconformance to total costs of quality.

A) 39.4% B) 50.8% C) 60.5% D) 100% A) 39.4% B) 50.8% C) 60.5% D) 100%

Internal reports on quality at the Acme Publishing Company generated the following information for the Trade Division for the first three months of the year: $\begin{array}{lr} \text { Total sales } & \$ 1,000,000 \\ \text { Costs of quality: } & \\ \text { Prevention } & 44,000 \\ \text { Appraisal } & 47,000 \\ \text { Internal failure } & 36,000 \\ \text { External failure } & 64,000 \end{array}$ Compute the ratio of costs of conformance to total costs of quality.

A) 44.6% B) 47.6% C) 50.1% D) 100% A) 44.6% B) 47.6% C) 50.1% D) 100%

Lipps Company manufactures custom-designed medical equipment for paramedic units.In May 2010,the company incurred the following costs of quality: \[\begin{array} { | l r |} \hline \text { Product design costs } & \$ 8,600 \\ \text { Product recall costs } & 5,200 \\ \text { Product simulation costs } & 13,500 \\ \text { Product testing costs } & 3,500 \\ \text { Product warranty claims } & 2,000 \\ \text { Scrap and rework costs } & 3,000 \\ \hline \end{array}\] Total quality costs of conformance for May were

A) $27,600. B) $11,600. C) $25,600. D) $22,100. A) $27,600. B) $11,600. C) $25,600. D) $22,100.

Exam 27: Quality Management and Measurement

XYZ Cosmetics,Inc.,has developed a set of nonfinancial measures to evaluate on-time product delivery performance for one of its best-selling cosmetics.The following data have been generated for the past four weeks: Purchase Production Week Order Cycle Delivery Lead Time Time Time 1 2.4 days 3.5 days 4.0 days 2 2.0 days 3.1 days 3.6 days 3 2.4 days 3.3 days 3.4 days 4 2.5 days 3.2 days 3.3 days Compute total delivery cycle time for Week 2.

(Multiple Choice)

4.9/5

(39)

Question 21

The Six Sigma quality standard was used by Motorola to improve its performance.

(True/False)

4.9/5

(41)

Question 22

Internal reports on quality at the Acme Publishing Company generated the following information for the Trade Division for the first three months of the year: Total sales \ 1,000,000 Costs of quality: Prevention 50,000 Appraisal 47,000 Internal failure 36,000 External failure 64,000 Compute the ratio of costs of nonconformance to total costs of quality.

(Multiple Choice)

4.8/5

(44)

Question 23

The key to good quality control is to evaluate quality early enough so that changes are made before the product is sold.

(True/False)

4.9/5

(45)

Question 24

Benchmarking and process mapping are two methods to measure quality.

(True/False)

4.7/5

(39)

Question 25

Some companies have moved to JIT without changing the substance of their accounting systems.Relying on the former accounting system may present problems for management because

(Multiple Choice)

4.7/5

(46)

Question 26

The first step in ensuring the production of high-quality products is to have a sound product design.

(True/False)

4.9/5

(46)

Question 27

Which of the following is not an example of a conformance cost?

(Multiple Choice)

4.9/5

(31)

Question 28

Internal reports on quality at the Acme Publishing Company generated the following information for the Trade Division for the first three months of the year: Total sales \ 1,000,000 Costs of quality: Prevention 44,000 Appraisal 47,000 Internal failure 36,000 External failure 64,000 Compute the ratio of costs of conformance to total costs of quality.

(Multiple Choice)

4.8/5

(35)

Question 29

Which of the following is a good indicator of management's strong commitment to product quality?

(Multiple Choice)

4.9/5

(44)

Question 30

Many traditional management information systems do not produce meaningful results for today's business environment.

(True/False)

4.9/5

(33)

Question 31

When a firm changes to a JIT operating and management philosophy,

(Multiple Choice)

4.9/5

(40)

Question 32

The primary focus of a management information system is management of costs.

(True/False)

4.8/5

(35)

Question 33

The award given to companies that achieve distinctive results in implementing total quality control is the

(Multiple Choice)

4.8/5

(45)

Question 34

In the new manufacturing environment,the point of sale and shipment of a product ends the management accountant's responsibility with respect to the product.

(True/False)

4.9/5

(39)

Question 35

The last step in ensuring the production of high-quality products is to have a sound product design.

(True/False)

4.9/5

(34)

Question 36

Discuss how the importance of product and service quality is recognized in industry today.Site examples of awards and organizations in your discussion.

(Essay)

4.9/5

(35)

Question 37

A management information system is not designed to provide data about individual customers.

(True/False)

5.0/5

(40)

Question 38

With respect to product quality,

(Multiple Choice)

4.8/5

(43)

Question 39

Lipps Company manufactures custom-designed medical equipment for paramedic units.In May 2010,the company incurred the following costs of quality: Product design costs \ 8,600 Product recall costs 5,200 Product simulation costs 13,500 Product testing costs 3,500 Product warranty claims 2,000 Scrap and rework costs 3,000 Total quality costs of conformance for May were

(Multiple Choice)

4.9/5

(38)

Question 40

Exam 27: Quality Management and Measurement

The Six Sigma quality standard was used by Motorola to improve its performance.

The key to good quality control is to evaluate quality early enough so that changes are made before the product is sold.

Benchmarking and process mapping are two methods to measure quality.

Some companies have moved to JIT without changing the substance of their accounting systems.Relying on the former accounting system may present problems for management because

The first step in ensuring the production of high-quality products is to have a sound product design.

Which of the following is not an example of a conformance cost?

Which of the following is a good indicator of management's strong commitment to product quality?

Many traditional management information systems do not produce meaningful results for today's business environment.

When a firm changes to a JIT operating and management philosophy,

The primary focus of a management information system is management of costs.

The award given to companies that achieve distinctive results in implementing total quality control is the

In the new manufacturing environment,the point of sale and shipment of a product ends the management accountant's responsibility with respect to the product.

The last step in ensuring the production of high-quality products is to have a sound product design.

Discuss how the importance of product and service quality is recognized in industry today.Site examples of awards and organizations in your discussion.

A management information system is not designed to provide data about individual customers.

With respect to product quality,

Uses of Accounting Information and the Financial Statements

Analyzing Business Transactions

Measuring Business Income

Supplement - Closing Entries and the Work Sheet

Financial Reporting and Analysis

The Operating Cycle and Merchandising Operations

Inventories

Cash and Receivables

Current Liabilities and Fair Value Accounting

Long Term Assets

Long-Term Liabilities

Contributed Capital

Investments

The Corporate Income Statement and the Statement of Stockholders Equity

The Statement of Cash Flows

The Changing Business Environment - a Managers Perspective

Cost Concepts and Cost Allocation

Costing Systems- Job Order Costing

Costing Systems- Process Costing

Value-Based Systems- Abm and Lean

Cost Behavior Analysis

The Budgeting Process

Performance Management and Evaluation

Standard Costing and Variance Analysis

Short Run Decision Analysis

Capital Investment Analysis

Pricing Decisions, incltarget Costing and Transfer Pricing

Financial Analysis of Performance

Filters