Question 1

What would be the total prevention cost appearing on the quality cost report?

Accepted Answer

A) $57,000 
B) $77,000 
C) $48,000 
D) $86,000 
A) $57,000 
B) $77,000 
C) $48,000 
D) $86,000

Question 2

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

Accepted Answer

A) Net cost of scrap. 
B) Product recalls. 
C) Rework labor and overhead. 
D) Downtime caused by quality problems. 
A) Net cost of scrap. 
B) Product recalls. 
C) Rework labor and overhead. 
D) Downtime caused by quality problems.

Question 3

What would be the total internal failure cost appearing on the quality cost report?

Accepted Answer

A) $124,000 
B) $113,000 
C) $121,000 
D) $64,000 
A) $124,000 
B) $113,000 
C) $121,000 
D) $64,000

Question 4

ISO 9000 certification is relatively easy to achieve because little documentation on quality control procedures is needed.

Accepted Answer

A) True 
 B)False

Question 5

If a company wants to decrease its total quality cost, it would usually be best to spend more money on:

Accepted Answer

A) prevention. 
B) internal and external failure. 
C) prevention and internal failure. 
D) appraisal and external failure. 
E) appraisal and internal failure. 
A) prevention. 
B) internal and external failure. 
C) prevention and internal failure. 
D) appraisal and external failure. 
E) appraisal and internal failure.

Question 6

What would be the total prevention cost appearing on the quality cost report?

Accepted Answer

A) $133,000 
B) $154,000 
C) $131,000 
D) $115,000 
A) $133,000 
B) $154,000 
C) $131,000 
D) $115,000

Question 7

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

Accepted Answer

A) Depreciation of test equipment. 
B) Re-entering data because of keying errors. 
C) Rework labor and overhead. 
D) Liability arising from defective products. 
A) Depreciation of test equipment. 
B) Re-entering data because of keying errors. 
C) Rework labor and overhead. 
D) Liability arising from defective products.

Question 8

What would be the total internal failure cost appearing on the quality cost report?

Accepted Answer

A) $161,000 
B) $129,000 
C) $139,000 
D) $170,000 
A) $161,000 
B) $129,000 
C) $139,000 
D) $170,000

Question 9

Harvie 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 Harvie Company's quality cost report is to...

Question 10

Galati 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 Galati Company's quality cost report is to...

Question 11

What would be the total external failure cost appearing on the quality cost report?

Accepted Answer

A) $90,000 
B) $551,000 
C) $121,000 
D) $282,000 
A) $90,000 
B) $551,000 
C) $121,000 
D) $282,000

Question 12

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

Accepted Answer

A) Quality improvement projects. 
B) Disposal of defective products. 
C) Depreciation of test equipment. 
D) Final product testing and inspection. 
A) Quality improvement projects. 
B) Disposal of defective products. 
C) Depreciation of test equipment. 
D) Final product testing and inspection.

Question 13

What would be the total internal failure cost appearing on the quality cost report?

Accepted Answer

A) $104,000 
B) $65,000 
C) $79,000 
D) $52,000 
A) $104,000 
B) $65,000 
C) $79,000 
D) $52,000

Question 14

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

Accepted Answer

A) Re-entering data because of keying errors. 
B) Quality data gathering, analysis, and reporting. 
C) Debugging software errors. 
D) Test and inspection of in-process goods. 
A) Re-entering data because of keying errors. 
B) Quality data gathering, analysis, and reporting. 
C) Debugging software errors. 
D) Test and inspection of in-process goods.

Question 15

A product can have a high quality design but have a low quality of conformance.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) Quality circles. 
B) Downtime caused by quality problems. 
C) Supplies used in testing and inspection. 
D) Quality engineering. 
A) Quality circles. 
B) Downtime caused by quality problems. 
C) Supplies used in testing and inspection. 
D) Quality engineering.

Question 17

Quality of conformance is the degree to which an actual product meets its design specifications and is free of defects or other problems that might affect appearance or performance.

Accepted Answer

A) True 
 B)False

Question 18

What would be the total appraisal cost appearing on the quality cost report?

Accepted Answer

A) $269,000 
B) $170,000 
C) $136,000 
D) $78,000 
A) $269,000 
B) $170,000 
C) $136,000 
D) $78,000

Question 19

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

Accepted Answer

A) Warranty repairs and replacements. 
B) Supplies used in testing and inspection. 
C) Debugging software errors. 
D) Final product testing and inspection. 
A) Warranty repairs and replacements. 
B) Supplies used in testing and inspection. 
C) Debugging software errors. 
D) Final product testing and inspection.

Question 20

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

Accepted Answer

A) Re-entering data because of keying errors. 
B) Final product testing and inspection. 
C) Supplies used in testing and inspection. 
D) Depreciation of test equipment. 
A) Re-entering data because of keying errors. 
B) Final product testing and inspection. 
C) Supplies used in testing and inspection. 
D) Depreciation of test equipment.

What would be the total prevention cost appearing on the quality cost report?

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

What would be the total internal failure cost appearing on the quality cost report?

ISO 9000 certification is relatively easy to achieve because little documentation on quality control procedures is needed.

If a company wants to decrease its total quality cost, it would usually be best to spend more money on:

What would be the total prevention cost appearing on the quality cost report?

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

What would be the total internal failure cost appearing on the quality cost report?

Harvie 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.

Galati 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.

What would be the total external failure cost appearing on the quality cost report?

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

What would be the total internal failure cost appearing on the quality cost report?

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

A product can have a high quality design but have a low quality of conformance.

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

Quality of conformance is the degree to which an actual product meets its design specifications and is free of defects or other problems that might affect appearance or performance.

What would be the total appraisal cost appearing on the quality cost report?

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

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

Managerial Accounting and Cost Concepts

Least-Squares Regression Computations

Job-Order Costing

Activity-Based Absorption Costing

The Predetermined Overhead Rate and Capacity

Process Costing

Fifo Method

Service Department Allocations

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Super-Variable Costing

Activity-Based Costing: a Tool to Aid Decision Making

Abc Action Analysis

Filters

Exam 3: Cost of Quality

What would be the total prevention cost appearing on the quality cost report?

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

What would be the total internal failure cost appearing on the quality cost report?

ISO 9000 certification is relatively easy to achieve because little documentation on quality control procedures is needed.

If a company wants to decrease its total quality cost, it would usually be best to spend more money on:

What would be the total prevention cost appearing on the quality cost report?

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

What would be the total internal failure cost appearing on the quality cost report?

Harvie 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.

Galati 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.

What would be the total external failure cost appearing on the quality cost report?

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

What would be the total internal failure cost appearing on the quality cost report?

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

A product can have a high quality design but have a low quality of conformance.

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

Quality of conformance is the degree to which an actual product meets its design specifications and is free of defects or other problems that might affect appearance or performance.

What would be the total appraisal cost appearing on the quality cost report?

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

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

Managerial Accounting and Cost Concepts

Least-Squares Regression Computations

Job-Order Costing

Activity-Based Absorption Costing

The Predetermined Overhead Rate and Capacity

Process Costing

Fifo Method

Service Department Allocations

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Super-Variable Costing

Activity-Based Costing: a Tool to Aid Decision Making

Abc Action Analysis

Filters