Question 1

The cost of quality training would be classified as a(n):

Accepted Answer

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

Question 2

The costs of lost sales arising from poor quality are always included in quality cost reports.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A)  Supplies used in testing and inspection. 
B)  Debugging software errors. 
C)  Quality improvement projects. 
D)  Lost sales arising from a reputation for poor quality. 
A)  Supplies used in testing and inspection. 
B)  Debugging software errors. 
C)  Quality improvement projects. 
D)  Lost sales arising from a reputation for poor quality.

Question 4

If a strategy is not working, it should become evident on the balanced scorecard when some of the predicted effects don't occur.

Accepted Answer

A) True 
 B)False

Question 5

Inspection of products would be classified as a(n):

Accepted Answer

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

Question 6

In preparing a quality cost report, the cost of employee's time spent in quality circles is part of:

Accepted Answer

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

Question 7

Fabrick 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)  $101,000 
B)  $72,000 
C)  $73,000 
D)  $96,000 
A)  $101,000 
B)  $72,000 
C)  $73,000 
D)  $96,000

Question 8

Beamer Corporation produces one product and it seems that the demand for that product is exceeding their manufacturing capacity. Below is the information concerning the machine that produces their product:   Beamer's quality rate was:

Accepted Answer

A)  0.31 
B)  0.42 
C)  0.80 
D)  0.75 
A)  0.31 
B)  0.42 
C)  0.80 
D)  0.75

Question 9

Beamer Corporation produces one product and it seems that the demand for that product is exceeding their manufacturing capacity. Below is the information concerning the machine that produces their product:   Beamer's utilization rate for the week was:

Accepted Answer

A)  0.31 
B)  0.42 
C)  0.60 
D)  0.80 
A)  0.31 
B)  0.42 
C)  0.60 
D)  0.80

Question 10

Inspection Time is generally considered to be value-added time.

Accepted Answer

A) True 
 B)False

Question 11

Move time is considered non-value-added time.

Accepted Answer

A) True 
 B)False

Question 12

Fackler 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)  $99,000 
B)  $67,000 
C)  $120,000 
D)  $79,000 
A)  $99,000 
B)  $67,000 
C)  $120,000 
D)  $79,000

Question 13

For management to be effective, it should focus on business processes, rather than functional departments, to serve the needs of its customers.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A)  Disposal of defective products. 
B)  Net cost of spoilage. 
C)  Depreciation of test equipment. 
D)  Technical support provided to suppliers. 
A)  Disposal of defective products. 
B)  Net cost of spoilage. 
C)  Depreciation of test equipment. 
D)  Technical support provided to suppliers.

Question 15

The cost of labor time required to rework defective units would be classified as a(n):

Accepted Answer

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

Question 16

Eagleson 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)  $107,000 
B)  $125,000 
C)  $84,000 
D)  $89,000 
A)  $107,000 
B)  $125,000 
C)  $84,000 
D)  $89,000

Question 17

Kingcade Corporation keeps careful track of the time required to fill orders. Data concerning a particular order appear below:   The throughput time was:

Accepted Answer

A)  34.6 hours 
B)  5.6 hours 
C)  29.0 hours 
D)  15.5 hours 
A)  34.6 hours 
B)  5.6 hours 
C)  29.0 hours 
D)  15.5 hours

Question 18

Alghamdi Corporation keeps careful track of the time required to fill orders. The times required for a particular order appear below:
   Required:a. Determine the throughput time.b. Determine the manufacturing cycle efficiency (MCE).c. Determine the delivery cycle time.

Accepted Answer

a.Throughput time= Process time + Inspec

Question 19

Schapp Corporation keeps careful track of the time required to fill orders. The times recorded for a particular order appear below:   The throughput time was:

Accepted Answer

A)  12.1 hours 
B)  22.7 hours 
C)  17.6 hours 
D)  5.1 hours 
A)  12.1 hours 
B)  22.7 hours 
C)  17.6 hours 
D)  5.1 hours

Question 20

During the most recent month at Schwab Corporation, queue time was 7.8 days, inspection time was 0.3 day, process time was 1.3 days, wait time was 9.7 days, and move time was 0.7 day.Required:a. Compute the throughput time.b. Compute the manufacturing cycle efficiency (MCE).c. What percentage of the production time is spent in non-value-added activities?d. Compute the delivery cycle time.

Accepted Answer

a.Throughput time= Process time + Inspec

The cost of quality training would be classified as a(n):

The costs of lost sales arising from poor quality are always included in quality cost reports.

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

If a strategy is not working, it should become evident on the balanced scorecard when some of the predicted effects don't occur.

Inspection of products would be classified as a(n):

In preparing a quality cost report, the cost of employee's time spent in quality circles is part of:

Fabrick 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?

Beamer Corporation produces one product and it seems that the demand for that product is exceeding their manufacturing capacity. Below is the information concerning the machine that produces their product: Beamer's quality rate was:

Beamer Corporation produces one product and it seems that the demand for that product is exceeding their manufacturing capacity. Below is the information concerning the machine that produces their product: Beamer's utilization rate for the week was:

Inspection Time is generally considered to be value-added time.

Move time is considered non-value-added time.

Fackler 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?

For management to be effective, it should focus on business processes, rather than functional departments, to serve the needs of its customers.

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

The cost of labor time required to rework defective units would be classified as a(n):

Eagleson 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?

Kingcade Corporation keeps careful track of the time required to fill orders. Data concerning a particular order appear below: The throughput time was:

Alghamdi Corporation keeps careful track of the time required to fill orders. The times required for a particular order appear below: Required:a. Determine the throughput time.b. Determine the manufacturing cycle efficiency (MCE).c. Determine the delivery cycle time.

Schapp Corporation keeps careful track of the time required to fill orders. The times recorded for a particular order appear below: The throughput time was:

Managerial Accounting and Cost Concepts

Job-Order Costing: Calculating Unit Product Costs

Job-Order Costing: Cost Flows and External Reporting

Process Costing

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Activity-Based Costing: a Tool to Aid Decision Making

Master Budgeting

Flexible Budgets and Performance Analysis

Standard Costs and Variances

Responsibility Accounting Systems

Differential Analysis: the Key to Decision Making

Capital Budgeting Decisions

Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 12: Strategic Performance Measurement

The cost of quality training would be classified as a(n):

The costs of lost sales arising from poor quality are always included in quality cost reports.

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

If a strategy is not working, it should become evident on the balanced scorecard when some of the predicted effects don't occur.

Inspection of products would be classified as a(n):

In preparing a quality cost report, the cost of employee's time spent in quality circles is part of:

Fabrick 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?

Beamer Corporation produces one product and it seems that the demand for that product is exceeding their manufacturing capacity. Below is the information concerning the machine that produces their product: Beamer's quality rate was:

Beamer Corporation produces one product and it seems that the demand for that product is exceeding their manufacturing capacity. Below is the information concerning the machine that produces their product: Beamer's utilization rate for the week was:

Inspection Time is generally considered to be value-added time.

Move time is considered non-value-added time.

Fackler 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?

For management to be effective, it should focus on business processes, rather than functional departments, to serve the needs of its customers.

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

The cost of labor time required to rework defective units would be classified as a(n):

Eagleson 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?

Kingcade Corporation keeps careful track of the time required to fill orders. Data concerning a particular order appear below: The throughput time was:

Alghamdi Corporation keeps careful track of the time required to fill orders. The times required for a particular order appear below: Required:a. Determine the throughput time.b. Determine the manufacturing cycle efficiency (MCE).c. Determine the delivery cycle time.

Schapp Corporation keeps careful track of the time required to fill orders. The times recorded for a particular order appear below: The throughput time was:

Managerial Accounting and Cost Concepts

Job-Order Costing: Calculating Unit Product Costs

Job-Order Costing: Cost Flows and External Reporting

Process Costing

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Activity-Based Costing: a Tool to Aid Decision Making

Master Budgeting

Flexible Budgets and Performance Analysis

Standard Costs and Variances

Responsibility Accounting Systems

Differential Analysis: the Key to Decision Making

Capital Budgeting Decisions

Statement of Cash Flows

Financial Statement Analysis

Filters