Question 1

The assignment of costs to environmental activities yields activity rates which are then used to assign costs to products.

Accepted Answer

A) True 
 B)False

Question 2

The assignment of only private costs to individual products is called:

Accepted Answer

A)  Full private costing 
B)  Full environmental costing 
C)  Life-cycle costing 
D)  Market costing 
A)  Full private costing 
B)  Full environmental costing 
C)  Life-cycle costing 
D)  Market costing

Question 3

Which of the following is NOT an important outcome of reporting environmental costs?

Accepted Answer

A)  the impact of environmental cost on firm profitability 
B)  the relative amounts expensed in each category of expenses 
C)  the budgeted environmental costs 
D)  each expense category expressed as a percentage of total operating costs 
A)  the impact of environmental cost on firm profitability 
B)  the relative amounts expensed in each category of expenses 
C)  the budgeted environmental costs 
D)  each expense category expressed as a percentage of total operating costs

Question 4

Even under a zero-defects approach to quality, what types of quality costs will still remain?

Accepted Answer

A)  Internal detection costs 
B)  Internal detection and appraisal costs 
C)  Prevention and appraisal costs 
D)  Prevention and internal detection costs 
A)  Internal detection costs 
B)  Internal detection and appraisal costs 
C)  Prevention and appraisal costs 
D)  Prevention and internal detection costs

Question 5

Quality experts maintain that total quality costs should NOT exceed

Accepted Answer

A)  2 to 4 percent of sales. 
B)  2 to 4 percent of total costs. 
C)  2 to 4 percent of profit. 
D)  profit. 
A)  2 to 4 percent of sales. 
B)  2 to 4 percent of total costs. 
C)  2 to 4 percent of profit. 
D)  profit.

Question 6

The total quality approach

Accepted Answer

A)  sets a robust zero-defect standard. 
B)  allows a certain number of defective products. 
C)  provides no encouragement for continuous improvement. 
D)  sets a currently attainable standard. 
A)  sets a robust zero-defect standard. 
B)  allows a certain number of defective products. 
C)  provides no encouragement for continuous improvement. 
D)  sets a currently attainable standard.

Question 7

Developing environmental performance measures is considered a(n)

Accepted Answer

A)  prevention activity. 
B)  detection activity. 
C)  internal failure activity. 
D)  external failure activity. 
A)  prevention activity. 
B)  detection activity. 
C)  internal failure activity. 
D)  external failure activity.

Question 8

Receiving medical care due to polluted air is considered a(n)

Accepted Answer

A)  prevention activity. 
B)  detection activity. 
C)  internal failure activity. 
D)  external failure activity. 
A)  prevention activity. 
B)  detection activity. 
C)  internal failure activity. 
D)  external failure activity.

Question 9

Quality cost performance reports have two essential elements.

Accepted Answer

A)  Kaizen standards and Taguchi quality loss function 
B)  Taguchi quality loss function and AQL 
C)  actual and expected outcomes 
D)  Kaizen standards and AQL 
A)  Kaizen standards and Taguchi quality loss function 
B)  Taguchi quality loss function and AQL 
C)  actual and expected outcomes 
D)  Kaizen standards and AQL

Question 10

__________ cost information is used to evaluate overall performance of quality improvement programs.

Accepted Answer

The answer of __________ cost information is used to evaluate...

Question 11

An environmental financial statement would NOT contain information on

Accepted Answer

A)  income sources. 
B)  prevention costs. 
C)  cost of goods sold. 
D)  current savings. 
A)  income sources. 
B)  prevention costs. 
C)  cost of goods sold. 
D)  current savings.

Question 12

In a quality cost report, quality costs are expressed as a percentage of total defective units.

Accepted Answer

A) True 
 B)False

Question 13

An environmental benefits report would NOT contain

Accepted Answer

A)  cost redesign. 
B)  additional revenues. 
C)  current savings. 
D)  cost avoidance. 
A)  cost redesign. 
B)  additional revenues. 
C)  current savings. 
D)  cost avoidance.

Question 14

Warranty work is a(n)

Accepted Answer

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

Question 15

Figure 14-8 Carbondioxide Chemical produces a number of chemical products, two of which are Product A1 and Product A2. The controller and environmental manager have identified the following environmental activities and costs associated with the two products:
  Refer to Figure 14-8. What is the energy usage cost per unit of Product A2?

Accepted Answer

A)  $0.048 
B)  $0.032 
C)  $0.016 
D)  $0.080 
A)  $0.048 
B)  $0.032 
C)  $0.016 
D)  $0.080

Question 16

The method that uses customer surveys and interviews by sales personnel to estimate future profit losses.

Accepted Answer

A)  Multiplier method 
B)  Taguchi quality loss function 
C)  Market research method 
D)  Process acceptance sampling method 
A)  Multiplier method 
B)  Taguchi quality loss function 
C)  Market research method 
D)  Process acceptance sampling method

Question 17

The costs of a consumer complaint department are

Accepted Answer

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

Question 18

At the beginning of the year, Lombardi Company initiated an environmental cost reduction program. To help assess the impact of the environmental cost reduction improvement program, the following data was collected for the current and preceding year:   For the current year, internal failure costs are what percentage of operating costs?

Accepted Answer

A)  2.67% 
B)  2.76% 
C)  1.38% 
D)  0.93% 
A)  2.67% 
B)  2.76% 
C)  1.38% 
D)  0.93%

Question 19

Activity-based costing is used to calculate the quality cost per unit of a company's products.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is NOT a detection activity?

Accepted Answer

A)  inspecting products and processes 
B)  developing environmental performance measures 
C)  testing for contamination 
D)  operating pollution control equipment 
A)  inspecting products and processes 
B)  developing environmental performance measures 
C)  testing for contamination 
D)  operating pollution control equipment

The assignment of costs to environmental activities yields activity rates which are then used to assign costs to products.

The assignment of only private costs to individual products is called:

Which of the following is NOT an important outcome of reporting environmental costs?

Even under a zero-defects approach to quality, what types of quality costs will still remain?

Quality experts maintain that total quality costs should NOT exceed

The total quality approach

Developing environmental performance measures is considered a(n)

Receiving medical care due to polluted air is considered a(n)

Quality cost performance reports have two essential elements.

__________ cost information is used to evaluate overall performance of quality improvement programs.

An environmental financial statement would NOT contain information on

In a quality cost report, quality costs are expressed as a percentage of total defective units.

An environmental benefits report would NOT contain

Warranty work is a(n)

The method that uses customer surveys and interviews by sales personnel to estimate future profit losses.

The costs of a consumer complaint department are

Activity-based costing is used to calculate the quality cost per unit of a company's products.

Which of the following is NOT a detection activity?

Introduction to Cost Management

Basic Cost Management Concepts

Cost Behavior

Activity-Based Costing

Product and Service Costing: Job-Order System

Process Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control Key

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility Accounting, Performance Evaluation, and Transfer Pricing

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

Filters

Exam 14: Quality and Environmental Cost Management

The assignment of costs to environmental activities yields activity rates which are then used to assign costs to products.

The assignment of only private costs to individual products is called:

Which of the following is NOT an important outcome of reporting environmental costs?

Even under a zero-defects approach to quality, what types of quality costs will still remain?

Quality experts maintain that total quality costs should NOT exceed

The total quality approach

Developing environmental performance measures is considered a(n)

Receiving medical care due to polluted air is considered a(n)

Quality cost performance reports have two essential elements.

__________ cost information is used to evaluate overall performance of quality improvement programs.

An environmental financial statement would NOT contain information on

In a quality cost report, quality costs are expressed as a percentage of total defective units.

An environmental benefits report would NOT contain

Warranty work is a(n)

The method that uses customer surveys and interviews by sales personnel to estimate future profit losses.

The costs of a consumer complaint department are

Activity-based costing is used to calculate the quality cost per unit of a company's products.

Which of the following is NOT a detection activity?

Introduction to Cost Management

Basic Cost Management Concepts

Cost Behavior

Activity-Based Costing

Product and Service Costing: Job-Order System

Process Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control Key

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility Accounting, Performance Evaluation, and Transfer Pricing

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

Filters