Deck 3: Cost of Quality

Question 1

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

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

Answer 1

C

Question 2

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

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

Answer 2

A

Question 3

An increase in appraisal costs will usually result in a decrease in internal failure costs.

Answer 3

False

Question 4

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

A)Product recalls.
B)Quality engineering.
C)Quality training.
D)Systems development.

Question 5

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

A)Re-entering data because of keying errors.
B)Rework labor and overhead.
C)Net cost of scrap.
D)Technical support provided to suppliers.

Question 6

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

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 7

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

A)Supervision of testing and inspection activities.
B)Re-entering data because of keying errors.
C)Cost of field servicing and handling complaints.
D)Depreciation of test equipment.

Question 8

Internal failure costs result from identification of defects during the appraisal process. Such costs may include scrap, rejected products, rework, and downtime.

Question 9

The cost of warranty repairs would be classified as a(n):

A)prevention cost.
B)appraisal cost.
C)internal failure cost.
D)external failure cost.

Question 10

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

A)Technical support provided to suppliers.
B)Rework labor and overhead.
C)Net cost of scrap.
D)Debugging software errors.

Question 11

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

Question 12

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

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

Question 13

In order to reduce its overall quality costs, a company should focus most of its efforts on:

A)prevention costs.
B)appraisal costs.
C)internal failure costs.
D)external failure costs.

Question 14

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

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

Question 15

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

Question 16

The information in a quality cost report can be used to help managers determine if their quality costs are poorly distributed.

Question 17

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

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

Question 18

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

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 19

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.

Question 20

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

A)Supervision of testing and inspection activities.
B)Systems development.
C)Quality engineering.
D)Quality training.

Question 21

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

A)$75,000
B)$102,000
C)$112,000
D)$92,000

Question 22

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

A)$127,000
B)$217,000
C)$85,000
D)$146,000

Question 23

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

A)$124,000
B)$524,000
C)$132,000
D)$245,000

Question 24

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

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

Question 25

Falstaff 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.

Question 26

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

A)$105,000
B)$100,000
C)$75,000
D)$78,000

Question 27

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

A)$64,000
B)$73,000
C)$93,000
D)$78,000

Question 28

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

A)$167,000
B)$130,000
C)$112,000
D)$102,000

Question 29

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

A)$91,000
B)$52,000
C)$156,000
D)$338,000

Question 30

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

A)$481,000
B)$107,000
C)$80,000
D)$324,000

Question 31

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

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

Question 32

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

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

Question 33

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

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

Question 34

Harui 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.

Question 35

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

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

Question 36

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

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.

Question 37

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

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

Question 38

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

A)$157,000
B)$127,000
C)$79,000
D)$140,000

Question 39

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

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

Question 40

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.

Question 41

Galant 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.

Question 42

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.