Question 1

Which of the following are NOT included in the COQ model?

Accepted Answer

A)  Opportunity costs 
B)  External failure costs 
C)  Appraisal costs 
D)  Prevention costs 
A)  Opportunity costs 
B)  External failure costs 
C)  Appraisal costs 
D)  Prevention costs

Question 2

A technical tool that provides users with the ability to study, control, and improve processes of all types is a:

Accepted Answer

A)  Balanced scorecard 
B)  Statistical process control 
C)  Cost of quality analysis 
D)  Just-in-time inventory 
A)  Balanced scorecard 
B)  Statistical process control 
C)  Cost of quality analysis 
D)  Just-in-time inventory

Question 3

The first key to strong financial performance is:

Accepted Answer

A)  Cost control 
B)  Customer satisfaction 
C)  Proper allocation of manufacturing overhead 
D)  Strategic planning 
A)  Cost control 
B)  Customer satisfaction 
C)  Proper allocation of manufacturing overhead 
D)  Strategic planning

Question 4

An example of an external failure cost would be:

Accepted Answer

A)  Product recalls 
B)  Adjusting test equipment 
C)  Scrap 
D)  Process or product design 
A)  Product recalls 
B)  Adjusting test equipment 
C)  Scrap 
D)  Process or product design

Question 5

Which of the following costs are generally the highest?

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 6

Performance measures that allow a company to monitor factors such as whether it is gaining market share and customer profitability are called:

Accepted Answer

A)  Internal process measures 
B)  Employee productivity measures 
C)  Outcome performance measures 
D)  Leading performance measures 
A)  Internal process measures 
B)  Employee productivity measures 
C)  Outcome performance measures 
D)  Leading performance measures

Question 7

Which of the following are some of the defining characteristics of total quality management?

Accepted Answer

A)  Emphasis of quality and continuous improvement and continuously planning, controlling, and evaluating improvement using specific measures 
B)  Emphasis of profitability before quality and continuous improvement and continuously planning, controlling, and evaluating improvement using specific measures 
C)  Emphasis of quality and continuous improvement and continuously reducing costs 
D)  Emphasis of reducing costs and continuously planning, controlling, and evaluating improvement using specific measures 
A)  Emphasis of quality and continuous improvement and continuously planning, controlling, and evaluating improvement using specific measures 
B)  Emphasis of profitability before quality and continuous improvement and continuously planning, controlling, and evaluating improvement using specific measures 
C)  Emphasis of quality and continuous improvement and continuously reducing costs 
D)  Emphasis of reducing costs and continuously planning, controlling, and evaluating improvement using specific measures

Question 8

What can be used to measure performance with respect to customer satisfaction?

Accepted Answer

A)  Number of new customers 
B)  Number of product returns 
C)  Customer retention rates 
D)  Warranty repairs 
A)  Number of new customers 
B)  Number of product returns 
C)  Customer retention rates 
D)  Warranty repairs

Question 9

Costs incurred to handle customer complaints are:

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 10

Exhibit 24-1 Shriber Company had the following balance sheet at the end of 2012:
  Refer to Exhibit 24-1. Using the information above, determine Shriber's invested capital assets.

Accepted Answer

A)  $530,290 
B)  $898,510 
C)  $887,490 
D)  $879,700 
A)  $530,290 
B)  $898,510 
C)  $887,490 
D)  $879,700

Question 11

An example of an outcome performance measure is:

Accepted Answer

A)  Number of defecting customers 
B)  Percentage of on-time deliveries 
C)  Number of production interruptions 
D)  Delivery cost to the customer 
A)  Number of defecting customers 
B)  Percentage of on-time deliveries 
C)  Number of production interruptions 
D)  Delivery cost to the customer

Question 12

An example of an internal failure cost would be:

Accepted Answer

A)  Product recalls 
B)  Adjusting test equipment 
C)  Scrap 
D)  Process or product design 
A)  Product recalls 
B)  Adjusting test equipment 
C)  Scrap 
D)  Process or product design

Question 13

Costs incurred for downtime of production equipment are:

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 14

An example of an appraisal cost would be:

Accepted Answer

A)  Product recalls 
B)  Adjusting test equipment 
C)  Scrap 
D)  Process or product design 
A)  Product recalls 
B)  Adjusting test equipment 
C)  Scrap 
D)  Process or product design

Question 15

An example of an outcome performance measure is:

Accepted Answer

A)  Percentage of on-time deliveries 
B)  Retaining current customers 
C)  Purchase cost to the customer 
D)  Production cycle time 
A)  Percentage of on-time deliveries 
B)  Retaining current customers 
C)  Purchase cost to the customer 
D)  Production cycle time

Question 16

The just-in-time inventory system focus is:

Accepted Answer

A)  A low cost supplier 
B)  State of the art, high technology equipment 
C)  Multiskilled workers 
D)  Waste elimination 
A)  A low cost supplier 
B)  State of the art, high technology equipment 
C)  Multiskilled workers 
D)  Waste elimination

Question 17

Traditional financial measures are now being supplemented in which area(s)?

Accepted Answer

A)  Learning and growth 
B)  Customer service 
C)  Internal process improvement 
D)  All of these are correct 
A)  Learning and growth 
B)  Customer service 
C)  Internal process improvement 
D)  All of these are correct

Question 18

The weighted average cost of capital is:

Accepted Answer

A)  The average return expected by both equity owners and debt holders 
B)  The average return expected by equity owners 
C)  The average return expected by debt holders 
D)  The net operating profit after taxes 
A)  The average return expected by both equity owners and debt holders 
B)  The average return expected by equity owners 
C)  The average return expected by debt holders 
D)  The net operating profit after taxes

Question 19

Which of the following is the revolutionary management accounting tool that tends to reduce waste associated with inventories?

Accepted Answer

A)  ABC 
B)  JIT 
C)  Economic value added 
D)  TQM 
A)  ABC 
B)  JIT 
C)  Economic value added 
D)  TQM

Question 20

Costs incurred to educate suppliers are:

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

Exam 24: New Measures of Performance

Which of the following are NOT included in the COQ model?

A technical tool that provides users with the ability to study, control, and improve processes of all types is a:

The first key to strong financial performance is:

An example of an external failure cost would be:

Which of the following costs are generally the highest?

Performance measures that allow a company to monitor factors such as whether it is gaining market share and customer profitability are called:

Which of the following are some of the defining characteristics of total quality management?

What can be used to measure performance with respect to customer satisfaction?

Costs incurred to handle customer complaints are:

Exhibit 24-1 Shriber Company had the following balance sheet at the end of 2012: Refer to Exhibit 24-1. Using the information above, determine Shriber's invested capital assets.

An example of an outcome performance measure is:

An example of an internal failure cost would be:

Costs incurred for downtime of production equipment are:

An example of an appraisal cost would be:

An example of an outcome performance measure is:

The just-in-time inventory system focus is:

Traditional financial measures are now being supplemented in which area(s)?

The weighted average cost of capital is:

Which of the following is the revolutionary management accounting tool that tends to reduce waste associated with inventories?

Costs incurred to educate suppliers are:

Accounting Information: Users and Uses

Financial Statements: An Overview

The Accounting Cycle: The Mechanics of Accounting

Completing the Accounting Cycle

Internal Controls: Ensuring the Integrity of Financial Information

Receivables: Selling a Product or a Service

Inventory and the Cost of Sales

Completing the Operating Cycle

Investments: Property, Plant, and Equipment and Intangible Assets

Financing: Long-Term Liabilities

Financing: Equity

Investments: Debt and Equity Securities

Statement of Cash Flows

Analyzing Financial Statements

Management Accounting and Cost Concepts

Cost Flows and Business Organizations

Activity-Based Costing

Budgeting and Control

Controlling Cost and Profit

Inventory Management and Variable and Absorption Costing

Cost Behavior and Decisions Using C-V-P Analysis

Relevant Information and Decisions

Capital Investment Decisions

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