Question 1

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

Accepted Answer

A)  evaluate. 
B)  perform. 
C)  repeat. 
D)  plan.

Question 2

The Deming Application Prize for quality originated in Japan.

Accepted Answer

A) True 
 B)False

Question 3

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.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

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

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Which company improved by using the Six Sigma quality standard?

Accepted Answer

A)  Disney 
B)  Lucent Technologies 
C)  Motorola 
D)  Amazon.com

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A)  Office chairs 
B)  Stereo speakers 
C)  Computer disks 
D)  Coffee mugs

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

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.

Accepted Answer

A) True 
 B)False

Question 11

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.

Accepted Answer

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

Question 12

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

Accepted Answer

A)  people. 
B)  costs. 
C)  activities. 
D)  time.

Question 13

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

Accepted Answer

A)  rarely. 
B)  directly. 
C)  indirectly. 
D)  inversely.

Question 14

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

Accepted Answer

The answer of All-aboard Travel Agency incurred the following activity...

Question 15

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

Accepted Answer

A)  2.91 percent. 
B)  3.56 percent. 
C)  6.47 percent. 
D)  9.63 percent.

Question 16

Traditional management information systems focus on financial reporting.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

Measures of customer complaints and warranty claims are used in tracking

Accepted Answer

A)  materials/scrap control performance. 
B)  inventory performance. 
C)  quality performance. 
D)  delivery performance.

Question 19

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

Accepted Answer

The answer of Identify and describe three traits that differentiate...

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.

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.