United Insurance Agency incurred the following activity costs related to service quality. $\begin{array}{ll} \text {Total sales}& \$ 1,000,000 \\ \text {Costs of quality:}\\ \text { Prevention } & 50,000 \\ \text { Appraisal } & 47,000 \\ \text { Internal failure } & 36,000 \\ \text { External failure } & 64,000 \end{array}$ Costs of conformance total

A) $15,500. B) $55,000. C) $120,000. D) $131,400. A) $15,500. B) $55,000. C) $120,000. D) $131,400.

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: $\begin{array}{lr} \text { Total sales } & \$ 1,000,000 \\ \text { Costs of quality: } & \\ \text { Prevention } & 22,500 \\ \text { Appraisal } & 47,000 \\ \text { Internal failure } & 36,000 \\ \text { External failure } & 64,000 \end{array}$ Compute the costs of nonconformance as a percentage of total sales.

A) 12.0% B) 5.4% C) 1.3% D) 10% A) 12.0% B) 5.4% C) 1.3% D) 10%

Exam 27: Quality Management and Measurement

Maxine Lavon is the controller for Prater Industries.She has been asked to develop a plan for installing a management information system in her company.She will need to do all of the following to help managers except

(Multiple Choice)

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Question 61

The Deming Application Prize for quality originated in Japan.

(True/False)

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Question 62

As a consequence of many manufacturing firms attempting to reduce the number of suppliers with which they deal,vendors that do not supply products with high quality and reliable delivery schedules may expect to be forced out of business.

(True/False)

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Question 63

United Insurance Agency incurred the following activity costs related to service quality. Total sales \ 1,000,000 Costs of quality: Prevention 50,000 Appraisal 47,000 Internal failure 36,000 External failure 64,000 Costs of conformance total

(Multiple Choice)

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Question 64

Reducing the costs of quality and increasing overall product quality can be achieved simultaneously.

(True/False)

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Question 65

Which company improved by using the Six Sigma quality standard?

(Multiple Choice)

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Question 66

A management information system can be designed to support many different types of management philosophies.

(True/False)

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Question 67

With which of the following products would the ISO most likely deal?

(Multiple Choice)

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Question 68

The organization that promotes improvement in quality worldwide is called the International Organization for Standardization.

(True/False)

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Question 69

Traditionally,the point of sale and shipment of a product has ended the management accountant's responsibility with respect to the product.In a new manufacturing environment,the measure of customer satisfaction may be an accounting responsibility too.

(True/False)

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Question 70

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 22,500 Appraisal 47,000 Internal failure 36,000 External failure 64,000 Compute the costs of nonconformance as a percentage of total sales.

(Multiple Choice)

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Question 71

The primary focus of a management information system is on the management of

(Multiple Choice)

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Question 72

Quality costs of conformance and costs of nonconformance are related to each other

(Multiple Choice)

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Question 73

All-aboard Travel Agency incurred the following activity costs related to the quality of service.Identify those costs that are costs of conformance (CC)and those costs that are costs of nonconformance (CN). ___ a. Reservation processing improvements _ b. Customer complaint processing _ c. Personnel training _ d. Computer downtime ___ e. Proofreading tickets and confirmations

(Essay)

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Question 74

Erin Stover has been appointed chief accountant for Dancer Industries.The company has three divisions that manufacture floor tiles.The industry is very competitive,and Dancer Industries has lost market share in each of the last four years.Three years ago,management announced a companywide restructuring and the adoption of total quality management.Since that time,each of the divisions has been allowed to chart its own path toward TQM.Stover is new to the company and has asked to see summary figures of the costs of quality for each of the divisions.The following data were presented to her for the past six months: Total quality costs as a percentage of sales for Adams County are

(Multiple Choice)

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Question 75

Traditional management information systems focus on financial reporting.

(True/False)

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Question 76

The Malcolm Baldrige Quality Award was created by the U.S.Congress.

(True/False)

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Question 77

Measures of customer complaints and warranty claims are used in tracking

(Multiple Choice)

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Question 78

Identify and describe three traits that differentiate management information systems (MIS)from traditional management accounting techniques.

(Essay)

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Question 79

Showing 61 - 79 of 79

Exam 27: Quality Management and Measurement

Maxine Lavon is the controller for Prater Industries.She has been asked to develop a plan for installing a management information system in her company.She will need to do all of the following to help managers except

The Deming Application Prize for quality originated in Japan.

As a consequence of many manufacturing firms attempting to reduce the number of suppliers with which they deal,vendors that do not supply products with high quality and reliable delivery schedules may expect to be forced out of business.

United Insurance Agency incurred the following activity costs related to service quality. Total sales \ 1,000,000 Costs of quality: Prevention 50,000 Appraisal 47,000 Internal failure 36,000 External failure 64,000 Costs of conformance total

Reducing the costs of quality and increasing overall product quality can be achieved simultaneously.

Which company improved by using the Six Sigma quality standard?

A management information system can be designed to support many different types of management philosophies.

With which of the following products would the ISO most likely deal?

The organization that promotes improvement in quality worldwide is called the International Organization for Standardization.

Traditionally,the point of sale and shipment of a product has ended the management accountant's responsibility with respect to the product.In a new manufacturing environment,the measure of customer satisfaction may be an accounting responsibility too.

The primary focus of a management information system is on the management of

Quality costs of conformance and costs of nonconformance are related to each other

Traditional management information systems focus on financial reporting.

The Malcolm Baldrige Quality Award was created by the U.S.Congress.

Measures of customer complaints and warranty claims are used in tracking

Identify and describe three traits that differentiate management information systems (MIS)from traditional management accounting techniques.

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

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