Question 1

A concept whereby organizations consider the needs of all stakeholders (not just stockholders) when making decisions is referred to as:

Accepted Answer

A)  Human rights advocacy. 
B)  Corporate social responsibility. 
C)  Environmental rights responsibility. 
D)  Social rights responsibility. 
A)  Human rights advocacy. 
B)  Corporate social responsibility. 
C)  Environmental rights responsibility. 
D)  Social rights responsibility.

Question 2

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

Accepted Answer

A)  Debugging software errors. 
B)  Supplies used in testing and inspection. 
C)  Re-entering data because of keying errors. 
D)  Warranty repairs and replacements. 
A)  Debugging software errors. 
B)  Supplies used in testing and inspection. 
C)  Re-entering data because of keying errors. 
D)  Warranty repairs and replacements.

Question 3

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

Accepted Answer

A)  8.7 hours 
B)  3.6 hours 
C)  22.0 hours 
D)  22.7 hours 
A)  8.7 hours 
B)  3.6 hours 
C)  22.0 hours 
D)  22.7 hours

Question 4

Halpert Corporation has been in operation for one year. The only product they produce is a specific bicycle chain. They want to make sure they are effectively utilizing the machinery they use to create this product. Below is the information concerning the machine that produces the bicycle chain:   Halpert's utilization rate for the week was:

Accepted Answer

A)  0.42 
B)  0.75 
C)  0.80 
D)  0.85 
A)  0.42 
B)  0.75 
C)  0.80 
D)  0.85

Question 5

Throughput time is the amount of time required to move a completed unit from the factory floor to the warehouse.

Accepted Answer

A) True 
 B)False

Question 6

In classifying the costs of quality at a company that manufactures sonar equipment, which of the following is considered an external failure cost?

Accepted Answer

A)  the net cost of scrap and spoilage incurred during production. 
B)  the cost of repairs and replacements made during the warranty period. 
C)  the cost of debugging software errors found in the sonar equipment during inspection at the plant. 
D)  both the cost of repairs and replacements made during the warranty period and the cost of debugging software errors found in the sonar equipment during inspection at the plant. 
E)  none of the above. 
A)  the net cost of scrap and spoilage incurred during production. 
B)  the cost of repairs and replacements made during the warranty period. 
C)  the cost of debugging software errors found in the sonar equipment during inspection at the plant. 
D)  both the cost of repairs and replacements made during the warranty period and the cost of debugging software errors found in the sonar equipment during inspection at the plant. 
E)  none of the above.

Question 7

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

Accepted Answer

A)  30.6 hours 
B)  2 hours 
C)  29.4 hours 
D)  11.1 hours 
A)  30.6 hours 
B)  2 hours 
C)  29.4 hours 
D)  11.1 hours

Question 8

Which of the following will increase a company's overall equipment effectiveness (OEE)?

Accepted Answer

A)  Choice A 
B)  Choice B 
C)  Choice C 
D)  Choice D 
A)  Choice A 
B)  Choice B 
C)  Choice C 
D)  Choice D

Question 9

A balanced scorecard consists of a report showing a performance measure such as return on investment (ROI) or residual income for all of the divisions in a company that generate profits.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A)  Final product testing and inspection. 
B)  Net cost of spoilage. 
C)  Repairs and replacements beyond the warranty period. 
D)  Rework labor and overhead. 
A)  Final product testing and inspection. 
B)  Net cost of spoilage. 
C)  Repairs and replacements beyond the warranty period. 
D)  Rework labor and overhead.

Question 11

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

Accepted Answer

A)  Final product testing and inspection. 
B)  Warranty repairs and replacements. 
C)  Depreciation of test equipment. 
D)  Debugging software errors. 
A)  Final product testing and inspection. 
B)  Warranty repairs and replacements. 
C)  Depreciation of test equipment. 
D)  Debugging software errors.

Question 12

A manufacturing cycle efficiency (MCE) ratio of less than 1.00 is desirable because this is the ratio of non-value-added time to throughput time.

Accepted Answer

A) True 
 B)False

Question 13

The corporate social responsibility measure of "Percent of customers that strongly agree with the statement "Your company is committed to environmental stewardship"" is an example of which performance measure category?

Accepted Answer

A)  internal business processes. 
B)  customer. 
C)  financial. 
D)  learning and growth. 
A)  internal business processes. 
B)  customer. 
C)  financial. 
D)  learning and growth.

Question 14

Fabrick Company's quality cost report is to be based on the following data:   What would be the total appraisal cost appearing on the quality cost report?

Accepted Answer

A)  $164,300 
B)  $99,700 
C)  $87,800 
D)  $63,300 
A)  $164,300 
B)  $99,700 
C)  $87,800 
D)  $63,300

Question 15

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

Accepted Answer

A)  39.1 hours 
B)  3.7 hours 
C)  34.5 hours 
D)  14.5 hours 
A)  39.1 hours 
B)  3.7 hours 
C)  34.5 hours 
D)  14.5 hours

Question 16

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

Accepted Answer

A)  Technical support provided to suppliers. 
B)  Net cost of spoilage. 
C)  Disposal of defective products. 
D)  Debugging software errors. 
A)  Technical support provided to suppliers. 
B)  Net cost of spoilage. 
C)  Disposal of defective products. 
D)  Debugging software errors.

Question 17

Eagleson Company's quality cost report is to be based on the following data:   What would be the total internal failure cost appearing on the quality cost report?

Accepted Answer

A)  $155,000 
B)  $150,000 
C)  $96,000 
D)  $107,000 
A)  $155,000 
B)  $150,000 
C)  $96,000 
D)  $107,000

Question 18

Queue time is considered non-value-added time.

Accepted Answer

A) True 
 B)False

Question 19

A quality cost report is usually compiled by the purchasing department to show the added costs of purchasing higher quality components.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A)  Returns and allowances arising from quality problems. 
B)  Quality improvement projects. 
C)  Quality engineering. 
D)  Net cost of spoilage. 
A)  Returns and allowances arising from quality problems. 
B)  Quality improvement projects. 
C)  Quality engineering. 
D)  Net cost of spoilage.

A concept whereby organizations consider the needs of all stakeholders (not just stockholders) when making decisions is referred to as:

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

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

Throughput time is the amount of time required to move a completed unit from the factory floor to the warehouse.

In classifying the costs of quality at a company that manufactures sonar equipment, which of the following is considered an external failure cost?

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

Which of the following will increase a company's overall equipment effectiveness (OEE)?

A balanced scorecard consists of a report showing a performance measure such as return on investment (ROI) or residual income for all of the divisions in a company that generate profits.

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

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

A manufacturing cycle efficiency (MCE) ratio of less than 1.00 is desirable because this is the ratio of non-value-added time to throughput time.

The corporate social responsibility measure of "Percent of customers that strongly agree with the statement "Your company is committed to environmental stewardship"" is an example of which performance measure category?

Fabrick Company's quality cost report is to be based on the following data: What would be the total appraisal 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 delivery cycle time was:

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

Eagleson Company's quality cost report is to be based on the following data: What would be the total internal failure cost appearing on the quality cost report?

Queue time is considered non-value-added time.

A quality cost report is usually compiled by the purchasing department to show the added costs of purchasing higher quality components.

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

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

A concept whereby organizations consider the needs of all stakeholders (not just stockholders) when making decisions is referred to as:

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

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

Throughput time is the amount of time required to move a completed unit from the factory floor to the warehouse.

In classifying the costs of quality at a company that manufactures sonar equipment, which of the following is considered an external failure cost?

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

Which of the following will increase a company's overall equipment effectiveness (OEE)?

A balanced scorecard consists of a report showing a performance measure such as return on investment (ROI) or residual income for all of the divisions in a company that generate profits.

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

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

A manufacturing cycle efficiency (MCE) ratio of less than 1.00 is desirable because this is the ratio of non-value-added time to throughput time.

The corporate social responsibility measure of "Percent of customers that strongly agree with the statement "Your company is committed to environmental stewardship"" is an example of which performance measure category?

Fabrick Company's quality cost report is to be based on the following data: What would be the total appraisal 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 delivery cycle time was:

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

Eagleson Company's quality cost report is to be based on the following data: What would be the total internal failure cost appearing on the quality cost report?

Queue time is considered non-value-added time.

A quality cost report is usually compiled by the purchasing department to show the added costs of purchasing higher quality components.

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

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