Question 1

ISO 9000 registration is required for regulated products sold in the European Union.

Accepted Answer

A) True 
 B)False

Question 2

Outdoor Oasis,Inc.
Outdoor Oasis,Inc.has just finished its first year of business.Outdoor Oasis,Inc.makes decorative outdoor furniture.The firm manufactured 2,500 pieces of furniture during the year: 2,400 were sold at garden centers for $456,000;100 pieces were defective and could only be sold as scrap metal (25 pounds each and can be sold for $2.50 per pound).No defective units could be reworked.During the year the following costs were incurred:
 $\begin{array}{l}
\text { Total rppraisal cost }&\$ 9,000 \
\text { Total prevention cost }&25,700 \
\text { Total production cost } &250,000\
\text { Total selling and administrative cost }&70,000

\end{array}$

Refer to Outdoor Oasis,Inc.Compute the total profits lost by the company from selling scrap units during its first year of operations.

Accepted Answer

Price for good units:$456,000

Question 3

A cost of quality report compares current period quality costs in specified categories to

Accepted Answer

A) last year's quality costs. 
B) current period budgeted quality costs. 
C) total quality costs for the period. 
D) both a and b. 
A) last year's quality costs. 
B) current period budgeted quality costs. 
C) total quality costs for the period. 
D) both a and b.

Question 4

When implementing TQM,an organization should establish long-term relationships with as many suppliers as possible.

Accepted Answer

A) True 
 B)False

Question 5

Mobile Corporation
Mobile Corporation is a manufacturer of electronic blood pressure monitors for
home use.The following is a summary of quality costs for the first year of operations.
 $\begin{array}{ll}
\text { Total defective units } & 1,500 \
\text { Number of units reworked } & 800 \
\text { Number of customer units returned } & 200 \
\text { Profit for a good unit } & \$ 50 \
\text { Profit for a defective unit } & \$ 30 \
\text { Cost to rework a defective urit } & \$ 12 \
\text { Cost of a returned unit } & \$ 20 \
\text { Total prevention cost } & \$ 17,500 \
\text { Total rppraisal cost } & \$ 9,500
\end{array}$
Refer to Mobile Corporation.Compute the total rework cost.

Accepted Answer

Refer to Mobile Corp

Question 6

The addition or removal of product or service characteristics to satisfy additional needs,especially price,reflect the ____ of a product or service.

Accepted Answer

A) value 
B) grade 
C) quality 
D) durability 
A) value 
B) grade 
C) quality 
D) durability

Question 7

Compliance costs include
$\begin{array}{ll}
\underline{\text { prevention costs} } & \underline{ \text {appraisal costs } }&\underline{\text { internal failure costs }} \
\end{array}$

Accepted Answer

A) yes no no 
B) no yes yes 
C) yes yes no 
D) yes yes yes 
A) yes no no 
B) no yes yes 
C) yes yes no 
D) yes yes yes

Question 8

What are the four tenets of total quality management (TQM)?

Accepted Answer

1.To dictate continuous improvement for

Question 9

A significant cost of quality that is not recorded in the accounting records is the

Accepted Answer

A) failure cost for a customer complaint center. 
B) cost of reworking products to bring them up to specification. 
C) opportunity costs of forgone future sales. 
D) appraisal cost for product equipment. 
A) failure cost for a customer complaint center. 
B) cost of reworking products to bring them up to specification. 
C) opportunity costs of forgone future sales. 
D) appraisal cost for product equipment.

Question 10

When implementing TQM,an organization should establish long-term relationships with preferred suppliers.

Accepted Answer

A) True 
 B)False

Question 11

A total quality system should place an emphasis on inspection.

Accepted Answer

A) True 
 B)False

Question 12

Grade refers to one of many quality levels that a product or service has relative to the inclusion or exclusion of certain characteristics to satisfy customer needs.

Accepted Answer

A) True 
 B)False

Question 13

Mobile Corporation
Mobile Corporation is a manufacturer of electronic blood pressure monitors for
home use.The following is a summary of quality costs for the first year of operations.
 $\begin{array}{ll}
\text { Total defective units } & 1,500 \
\text { Number of units reworked } & 800 \
\text { Number of customer units returned } & 200 \
\text { Profit for a good unit } & \$ 50 \
\text { Profit for a defective unit } & \$ 30 \
\text { Cost to rework a defective urit } & \$ 12 \
\text { Cost of a returned unit } & \$ 20 \
\text { Total prevention cost } & \$ 17,500 \
\text { Total rppraisal cost } & \$ 9,500
\end{array}$
Refer to Mobile Corporation.Compute the profit lost by selling defective units not reworked.

Accepted Answer

Refer to Mobile Corporation.Co

Question 14

Total quality management (TQM)requires the commitment of all individuals within an organization.

Accepted Answer

A) True 
 B)False

Question 15

____ places the primary responsibility for quality on the maker or producer.

Accepted Answer

A) Pareto analysis 
B) Quality control 
C) Benchmarking 
D) Activity analysis 
A) Pareto analysis 
B) Quality control 
C) Benchmarking 
D) Activity analysis

Question 16

A benchmarking process that is non-industry specific and focuses on how companies compete is referred to as ___________________________________.

Accepted Answer

strategic

Question 17

Discuss the four categories of quality costs.

Accepted Answer

Prevention costs are incurred to prevent

Question 18

All attempts to reduce variability and defects in products reflect the implementation of

Accepted Answer

A) activity analysis. 
B) statistical process control. 
C) quality control. 
D) control charts. 
A) activity analysis. 
B) statistical process control. 
C) quality control. 
D) control charts.

Question 19

Which of the following can be used to indicate factors that slow down or cause unnecessary work in a process?

Accepted Answer

A) activity analysis 
B) total quality management 
C) cost of quality 
D) all of the above 
A) activity analysis 
B) total quality management 
C) cost of quality 
D) all of the above

Question 20

Money spent on employee training is a

Accepted Answer

A) prevention cost. 
B) appraisal cost. 
C) empowerment cost. 
D) Pareto cost. 
A) prevention cost. 
B) appraisal cost. 
C) empowerment cost. 
D) Pareto cost.

ISO 9000 registration is required for regulated products sold in the European Union.

A cost of quality report compares current period quality costs in specified categories to

When implementing TQM,an organization should establish long-term relationships with as many suppliers as possible.

The addition or removal of product or service characteristics to satisfy additional needs,especially price,reflect the ____ of a product or service.

Compliance costs include

What are the four tenets of total quality management (TQM)?

A significant cost of quality that is not recorded in the accounting records is the

When implementing TQM,an organization should establish long-term relationships with preferred suppliers.

A total quality system should place an emphasis on inspection.

Grade refers to one of many quality levels that a product or service has relative to the inclusion or exclusion of certain characteristics to satisfy customer needs.

Total quality management (TQM)requires the commitment of all individuals within an organization.

____ places the primary responsibility for quality on the maker or producer.

A benchmarking process that is non-industry specific and focuses on how companies compete is referred to as ___________________________________.

Discuss the four categories of quality costs.

All attempts to reduce variability and defects in products reflect the implementation of

Which of the following can be used to indicate factors that slow down or cause unnecessary work in a process?

Money spent on employee training is a

Introduction to Cost Accounting

Cost Terminology and Cost Behaviors

Predetermined Overhead Rates, Flexible Budgets, and Absorptionvariable Costing

Activity-Based Management and Activity-Based Costing

Job Order Costing

Process Costing

Standard Costing and Variance Analysis

The Master Budget

Break-Even Point and Cost-Volume-Profit Analysis

Relevant Information for Decision Making

Allocation of Joint Costs and Accounting for By-Products

Introduction to Cost Management Systems

Responsibility Accounting,support Department Allocations,and Transfer Pricing

Performance Measurement, balanced Scorecards, and Performance Rewards

Capital Budgeting

Managing Costs and Uncertainty

Inventory and Production Management

Emerging Management Practices

Filters

Exam 17: Implementing Quality Concepts

ISO 9000 registration is required for regulated products sold in the European Union.

A cost of quality report compares current period quality costs in specified categories to

When implementing TQM,an organization should establish long-term relationships with as many suppliers as possible.

The addition or removal of product or service characteristics to satisfy additional needs,especially price,reflect the ____ of a product or service.

Compliance costs include

What are the four tenets of total quality management (TQM)?

A significant cost of quality that is not recorded in the accounting records is the

When implementing TQM,an organization should establish long-term relationships with preferred suppliers.

A total quality system should place an emphasis on inspection.

Grade refers to one of many quality levels that a product or service has relative to the inclusion or exclusion of certain characteristics to satisfy customer needs.

Total quality management (TQM)requires the commitment of all individuals within an organization.

____ places the primary responsibility for quality on the maker or producer.

A benchmarking process that is non-industry specific and focuses on how companies compete is referred to as ___________________________________.

Discuss the four categories of quality costs.

All attempts to reduce variability and defects in products reflect the implementation of

Which of the following can be used to indicate factors that slow down or cause unnecessary work in a process?

Money spent on employee training is a

Introduction to Cost Accounting

Cost Terminology and Cost Behaviors

Predetermined Overhead Rates, Flexible Budgets, and Absorptionvariable Costing

Activity-Based Management and Activity-Based Costing

Job Order Costing

Process Costing

Standard Costing and Variance Analysis

The Master Budget

Break-Even Point and Cost-Volume-Profit Analysis

Relevant Information for Decision Making

Allocation of Joint Costs and Accounting for By-Products

Introduction to Cost Management Systems

Responsibility Accounting,support Department Allocations,and Transfer Pricing

Performance Measurement, balanced Scorecards, and Performance Rewards

Capital Budgeting

Managing Costs and Uncertainty

Inventory and Production Management

Emerging Management Practices

Filters