Question 1

Thais Company's quality cost report is to be based on the following data:  
-What would be the total prevention cost appearing on the quality cost report?

Accepted Answer

A) $98,000 
B) $84,000 
C) $113,000 
D) $92,000 
A) $98,000 
B) $84,000 
C) $113,000 
D) $92,000 A

Question 2

Eacker Company's quality cost report is to be based on the following data:  
-What would be the total appraisal cost appearing on the quality cost report?

Accepted Answer

A) $185,000 
B) $165,000 
C) $196,000 
D) $128,000 
A) $185,000 
B) $165,000 
C) $196,000 
D) $128,000 C

Question 3

Greater internal failure costs as a result of appraisal activities generally result in less:

Accepted Answer

A) prevention costs. 
B) appraisal costs. 
C) external failure costs. 
D) all of the above. 
A) prevention costs. 
B) appraisal costs. 
C) external failure costs. 
D) all of the above. C

Question 4

Faas Company's quality cost report is to be based on the following data:  
-What would be the total appraisal cost appearing on the quality cost report?

Accepted Answer

A) $130,000 
B) $148,000 
C) $236,000 
D) $117,000 
A) $130,000 
B) $148,000 
C) $236,000 
D) $117,000

Question 5

An increase in appraisal costs will usually result in an increase in internal failure costs.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) Rework labor and overhead. 
B) Lost sales arising from a reputation for poor quality. 
C) Net cost of scrap. 
D) Depreciation of test equipment. 
A) Rework labor and overhead. 
B) Lost sales arising from a reputation for poor quality. 
C) Net cost of scrap. 
D) Depreciation of test equipment.

Question 7

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

Accepted Answer

A) Quality training. 
B) Systems development. 
C) Repairs and replacements beyond the warranty period. 
D) Quality engineering. 
A) Quality training. 
B) Systems development. 
C) Repairs and replacements beyond the warranty period. 
D) Quality engineering.

Question 8

Eacker Company's quality cost report is to be based on the following data:  
-What would be the total prevention cost appearing on the quality cost report?

Accepted Answer

A) $151,000 
B) $155,000 
C) $145,000 
D) $103,000 
A) $151,000 
B) $155,000 
C) $145,000 
D) $103,000

Question 9

Faas Company's quality cost report is to be based on the following data:  
-What would be the total internal failure cost appearing on the quality cost report?

Accepted Answer

A) $172,000 
B) $160,000 
C) $102,000 
D) $117,000 
A) $172,000 
B) $160,000 
C) $102,000 
D) $117,000

Question 10

Hartoon Company's quality cost report is to be based on the following data:    Required:
Prepare a Quality Cost Report in good form with separate sections for prevention costs,appraisal costs,internal failure costs,and external failure costs.

Accepted Answer

The answer of Hartoon Company's quality cost report is to...

Question 11

Thais Company's quality cost report is to be based on the following data:  
-What would be the total appraisal cost appearing on the quality cost report?

Accepted Answer

A) $155,000 
B) $170,000 
C) $99,000 
D) $197,000 
A) $155,000 
B) $170,000 
C) $99,000 
D) $197,000

Question 12

Hartwell Company's quality cost report is to be based on the following data:    Required:
Prepare a Quality Cost Report in good form with separate sections for prevention costs,appraisal costs,internal failure costs,and external failure costs.

Accepted Answer

The answer of Hartwell Company's quality cost report is to...

Question 13

Faast Company's quality cost report is to be based on the following data:  
-What would be the total appraisal cost appearing on the quality cost report?

Accepted Answer

A) $247,000 
B) $108,000 
C) $121,000 
D) $102,000 
A) $247,000 
B) $108,000 
C) $121,000 
D) $102,000

Question 14

Faas Company's quality cost report is to be based on the following data:  
-What would be the total external failure cost appearing on the quality cost report?

Accepted Answer

A) $142,000 
B) $550,000 
C) $314,000 
D) $114,000 
A) $142,000 
B) $550,000 
C) $314,000 
D) $114,000

Question 15

Thais Company's quality cost report is to be based on the following data:  
-What would be the total external failure cost appearing on the quality cost report?

Accepted Answer

A) $373,000 
B) $100,000 
C) $570,000 
D) $126,000 
A) $373,000 
B) $100,000 
C) $570,000 
D) $126,000

Question 16

Faast Company's quality cost report is to be based on the following data:  
-What would be the total external failure cost appearing on the quality cost report?

Accepted Answer

A) $286,000 
B) $533,000 
C) $75,000 
D) $109,000 
A) $286,000 
B) $533,000 
C) $75,000 
D) $109,000

Question 17

Gadsen Company's quality cost report is to be based on the following data:   Required: 
Prepare a Quality Cost Report in good form with separate sections for prevention costs,appraisal costs,internal failure costs,and external failure costs.

Accepted Answer

The answer of Gadsen Company's quality cost report is to...

Question 18

Appraisal costs are incurred to identify defective products before they are shipped to customers.

Accepted Answer

A) True 
 B)False

Question 19

Eacker Company's quality cost report is to be based on the following data:  
-What would be the total external failure cost appearing on the quality cost report?

Accepted Answer

A) $277,000 
B) $143,000 
C) $119,000 
D) $628,000 
A) $277,000 
B) $143,000 
C) $119,000 
D) $628,000

Question 20

Ordinarily,managers are not aware of the magnitude of their quality costs because these costs cut across departmental lines and are not normally tracked and accumulated by the cost system.

Accepted Answer

A) True 
 B)False

Exam 16: Appendix B: Cost of Quality

Thais Company's quality cost report is to be based on the following data: -What would be the total prevention cost appearing on the quality cost report?

Eacker Company's quality cost report is to be based on the following data: -What would be the total appraisal cost appearing on the quality cost report?

Greater internal failure costs as a result of appraisal activities generally result in less:

Faas Company's quality cost report is to be based on the following data: -What would be the total appraisal cost appearing on the quality cost report?

An increase in appraisal costs will usually result in an increase in internal failure costs.

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

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

Eacker Company's quality cost report is to be based on the following data: -What would be the total prevention cost appearing on the quality cost report?

Faas Company's quality cost report is to be based on the following data: -What would be the total internal failure cost appearing on the quality cost report?

Hartoon Company's quality cost report is to be based on the following data: Required: Prepare a Quality Cost Report in good form with separate sections for prevention costs,appraisal costs,internal failure costs,and external failure costs.

Thais Company's quality cost report is to be based on the following data: -What would be the total appraisal cost appearing on the quality cost report?

Hartwell Company's quality cost report is to be based on the following data: Required: Prepare a Quality Cost Report in good form with separate sections for prevention costs,appraisal costs,internal failure costs,and external failure costs.

Faast Company's quality cost report is to be based on the following data: -What would be the total appraisal cost appearing on the quality cost report?

Faas Company's quality cost report is to be based on the following data: -What would be the total external failure cost appearing on the quality cost report?

Thais Company's quality cost report is to be based on the following data: -What would be the total external failure cost appearing on the quality cost report?

Faast Company's quality cost report is to be based on the following data: -What would be the total external failure cost appearing on the quality cost report?

Gadsen Company's quality cost report is to be based on the following data: Required: Prepare a Quality Cost Report in good form with separate sections for prevention costs,appraisal costs,internal failure costs,and external failure costs.

Appraisal costs are incurred to identify defective products before they are shipped to customers.

Eacker Company's quality cost report is to be based on the following data: -What would be the total external failure cost appearing on the quality cost report?

Ordinarily,managers are not aware of the magnitude of their quality costs because these costs cut across departmental lines and are not normally tracked and accumulated by the cost system.

Managerial Accounting and Cost Concepts

Job-Order Costing

Process Costing

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Activity-Based Costing: a Tool to Aid Decision Making

Profit Planning

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

Least-Squares Regression Computations

The Predetermined Overhead Rate and Capacity

Further Classification of Labor Costs

Fifo Method

Service Department Allocations

Abc Action Analysis

Using a Modified Form of Activity-Based Costing to Determine Product Costs for External Reports

Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

Journal Entries to Record Variances

Transfer Pricing

Service Department Charges

The Concept of Present Value

Income Taxes in Capital Budgeting Decisions

The Direct Method of Determining the Net Cash Provided by Operating Activities

Pricing Products and Services

Profitability Analysis

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