Exam 14: Quality and Environmental Cost Management

Figure 14-2 At the beginning of the year, Devonshire Company initiated a quality improvement program. The program was successful in reducing scrap and rework costs. To help assess the impact of the quality improvement program, the following data were collected for the current and preceding years: Refer to Figure 14-2. For the current year, internal failure costs are what percentage of sales?

The environmental cost report contains information on the impact of environmental costs of profitability, and amounts spent on each category of activities.

Cost-volume-profit analysis relies on analysis of fixed and variable costs.

In a quality cost report, quality costs are grouped into categories and then each category of quality costs is expressed as a percentage of

The long-range quality performance report compares actual with final quality costs.

__________ analysis relies in the analysis of fixed and variable costs together with cost. or

Activity-based costing facilitates environmental costing by tracing costs to the responsible products.

A goal based on short-run quality goals is the

Maintaining pollution equipment is considered a(n)

Internal failure costs incurred by failure of products to conform to specifications are discovered after sales take place.

Environmental cost redesign would not be a part of an __________ report.

The following information pertains to Molotov, Inc., for 2014: Quality costs are what percentage of sales?

An example of a prevention cost is

At the beginning of the year, Randy Company initiated a quality improvement program. The program was successful in reducing scrap and rework costs. To help assess the impact of the quality improvement program, the following data were collected for the current and preceding years: Required:

Environmental costs of production and post-purchase costs are examples of environmental product costs.

Figure 14-7 At the beginning of the year, Molybdenum Company initiated an environmental cost reduction program. To help assess the impact of the environmental cost reduction improvement program, the following data was collected for the current and preceding year: Refer to Figure 14-7. For the current year, prevention costs are what percentage of operating costs?

The predetermined amount of defective product that a company permits to be sold is called:

At the beginning of the year, Nevermore, Inc., initiated a quality improvement program. The program was successful in reducing scrap and rework costs. To help assess the impact of the quality improvement program, the following data were collected for the current and preceding years: Required:

The __________ report is used to evaluate budgeted quality costs goals.

Which of the following is NOT an example of a quality performance report?