Question 1

Compare and contrast results benchmarking and process benchmarking.

Accepted Answer

The answer of Compare and contrast results benchmarking and process...

Question 2

Reverse engineering is used in

Accepted Answer

A) statistical process control. 
B) process benchmarking. 
C) results benchmarking. 
D) price fixing.

Question 3

Value refers to a product meeting the highest number of a customer's needs at the lowest possible cost.

Accepted Answer

A) True 
 B)False

Question 4

An appraisal cost is created by

Accepted Answer

A) installing automated technology. 
B) reworking products. 
C) verifying procedures. 
D) rescheduling and setup.

Question 5

Total quality management is inseparable from the concept of

Accepted Answer

A) ISO certification. 
B) centralized organizational structure. 
C) continuous improvement. 
D) the product life cycle.

Question 6

StatPro Corporation
StatPro Corporation is a manufacturer of a versatile statistical calculator.The following information is a summary of defective and returned units for the previous year.
$\begin{array}{ll}
\text { Total defective units } & 1,000 \
\text { Number of units reworked } & 750 \
\text { Number of customer units returned } & 150 \
\text { Profit for a good unit } & \$ 40 \
\text { Profit for a defective unit } & \$ 25 \
\text { Cost to rework a defective unit } & \$ 10 \
\text { Cost of a returned unit } & \$ 15 \
\text { Total prevention cost } & \$ 10,000 \
\text { Total appraisal cost } & \$ 5,000
\end{array}$

Refer to StatPro Corporation.The cost of processing customer returns is

Accepted Answer

A) $9,000. 
B) $2,500. 
C) $22,500. 
D) $2,250.

Question 7

The two costs of compliance are ______________________________ and ______________________________.

Accepted Answer

The answer of The two costs of compliance are ______________________________...

Question 8

Mistakes not eliminated by prevention costs may cause

$\begin{array}{ll}
\underline{\text { appraisal costs }} &\underline{\text { failure costs }}
\end{array}$

Accepted Answer

A) no no 
B) no yes 
C) yes no 
D) yes yes

Question 9

Registration under ISO 9000 is

Accepted Answer

A) required for all companies doing business internationally. 
B) required for all European companies doing business in Europe. 
C) not required for U.S.companies unless they use European suppliers. 
D) required for all companies producing regulated products to be sold in the European Union.

Question 10

Conducting a quality audit is an appraisal cost.

Accepted Answer

A) True 
 B)False

Question 11

StatPro Corporation
StatPro Corporation is a manufacturer of a versatile statistical calculator.The following information is a summary of defective and returned units for the previous year.
$\begin{array}{ll}
\text { Total defective units } & 1,000 \
\text { Number of units reworked } & 750 \
\text { Number of customer units returned } & 150 \
\text { Profit for a good unit } & \$ 40 \
\text { Profit for a defective unit } & \$ 25 \
\text { Cost to rework a defective unit } & \$ 10 \
\text { Cost of a returned unit } & \$ 15 \
\text { Total prevention cost } & \$ 10,000 \
\text { Total appraisal cost } & \$ 5,000
\end{array}$

Refer to StatPro Corporation.The total rework cost is

Accepted Answer

A) $7,500. 
B) $15,000. 
C) $2,500. 
D) $3,750.

Question 12

Historically,the cost of quality has been

Accepted Answer

A) included in account balances for items such as Work in Process Inventory and marketing expenses. 
B) detailed in various "cost of quality" account balances on the Income Statement. 
C) immaterial because no accounts were developed to detail these amounts. 
D) generally spent in the prevention rather than the appraisal category.

Question 13

Which of the following is false as it relates to quality?

Accepted Answer

A) Quality is the total of all characteristics of a product or service that impacts on its ability to meet the needs of a specific person. 
B) Quality must always be viewed from the user's perspective. 
C) Quality is never concerned with what the user thinks,feels,or deems important. 
D) The definition of quality has evolved through time and is more currently comprehensive than in the past.

Question 14

Costs incurred to correct defects in products after shipment are referred to as ________________________________________.

Accepted Answer

The answer of Costs incurred to correct defects in products...

Question 15

How do control charts mesh with the concept of total quality control (TQC)?

Accepted Answer

The answer of How do control charts mesh with the...

Question 16

Mobile Corporation
Mobile Corporation is a manufacturer of electronic blood pressure monitors for
home use.The following is a summary of quality costs for the first year of operations.
 $\begin{array}{ll}
\text { Total defective units } & 1,500 \
\text { Number of units reworked } & 800 \
\text { Number of customer units returned } & 200 \
\text { Profit for a good unit } & \$ 50 \
\text { Profit for a defective unit } & \$ 30 \
\text { Cost to rework a defective urit } & \$ 12 \
\text { Cost of a returned unit } & \$ 20 \
\text { Total prevention cost } & \$ 17,500 \
\text { Total rppraisal cost } & \$ 9,500
\end{array}$
Refer to Mobile Corporation.Compute the cost of processing customer returns.

Accepted Answer

The answer of Mobile Corporation
Mobile Corporation is a manufacturer of...

Question 17

Pareto analysis is frequently used to aid management in deciding where to concentrate quality prevention cost dollars.

Accepted Answer

A) True 
 B)False

Question 18

Testing and adjusting manufacturing equipment is an appraisal cost.

Accepted Answer

A) True 
 B)False

Question 19

A control chart graphs

Accepted Answer

A) actual process results relative to a range of acceptable variation. 
B) expected process results relative to upper and lower control limits. 
C) actual process results relative to value-added and non-value-added activities. 
D) the cost of process malfunctions relative to the cost of reducing process variations.

Question 20

Which of the following statements is true?

Accepted Answer

A) The more customers a company has,the better off the company is. 
B) A company should spare no expense to provide customer satisfaction. 
C) Most customers make quality determinations by comparing a product or service to a comparable product. 
D) Cost-benefit analysis can help identify customers that cost more than they are worth to the company.

Exam 17: Implementing Quality Concepts

Compare and contrast results benchmarking and process benchmarking.

Reverse engineering is used in

Value refers to a product meeting the highest number of a customer's needs at the lowest possible cost.

An appraisal cost is created by

Total quality management is inseparable from the concept of

The two costs of compliance are and .

Mistakes not eliminated by prevention costs may cause $\begin{array}{ll}\underline{\text { appraisal costs }} &\underline{\text { failure costs }}\end{array}$

Registration under ISO 9000 is

Conducting a quality audit is an appraisal cost.

Historically,the cost of quality has been

Which of the following is false as it relates to quality?

Costs incurred to correct defects in products after shipment are referred to as ________________________________________.

How do control charts mesh with the concept of total quality control (TQC)?

Pareto analysis is frequently used to aid management in deciding where to concentrate quality prevention cost dollars.

Testing and adjusting manufacturing equipment is an appraisal cost.

A control chart graphs

Which of the following statements is true?

Exam 17: Implementing Quality Concepts

Compare and contrast results benchmarking and process benchmarking.

Reverse engineering is used in

Value refers to a product meeting the highest number of a customer's needs at the lowest possible cost.

An appraisal cost is created by

Total quality management is inseparable from the concept of

The two costs of compliance are ______________________________ and ______________________________.

Mistakes not eliminated by prevention costs may cause appraisal costs ‾ failure costs ‾\begin{array}{ll}\underline{\text { appraisal costs }} &\underline{\text { failure costs }}\end{array} appraisal costs ​​ failure costs ​​

Registration under ISO 9000 is

Conducting a quality audit is an appraisal cost.

Historically,the cost of quality has been

Which of the following is false as it relates to quality?

Costs incurred to correct defects in products after shipment are referred to as ________________________________________.

How do control charts mesh with the concept of total quality control (TQC)?

Pareto analysis is frequently used to aid management in deciding where to concentrate quality prevention cost dollars.

Testing and adjusting manufacturing equipment is an appraisal cost.

A control chart graphs

Which of the following statements is true?

The two costs of compliance are and .

Mistakes not eliminated by prevention costs may cause $\begin{array}{ll}\underline{\text { appraisal costs }} &\underline{\text { failure costs }}\end{array}$