Question 1

A graph that plots quality costs against time is the

Accepted Answer

A)  interim quality performance report. 
B)  one-year quality performance report. 
C)  multiple-period quality trend report. 
D)  long-range quality performance report. 
A)  interim quality performance report. 
B)  one-year quality performance report. 
C)  multiple-period quality trend report. 
D)  long-range quality performance report.

Question 2

Which of the following statements is true about ISO 9000?

Accepted Answer

A)  ISO 9000 is a standard of quality measurement. 
B)  ISO 9000 has not been adopted in Europe. 
C)  ISO 9000 certifies the quality of the product. 
D)  ISO 9000 certifies the firm's commitment to continuous improvement. 
A)  ISO 9000 is a standard of quality measurement. 
B)  ISO 9000 has not been adopted in Europe. 
C)  ISO 9000 certifies the quality of the product. 
D)  ISO 9000 certifies the firm's commitment to continuous improvement.

Question 3

Product inspection 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 4

As part of its environmental cost reporting system, McClaren Company tracks its total environmental costs. Consider the cost and sales data given:   What is the environmental costs as a percentage of sales for 2014?

Accepted Answer

A)  12% 
B)  15% 
C)  80% 
D)  8.33% 
A)  12% 
B)  15% 
C)  80% 
D)  8.33%

Question 5

If costs of quality were evaluated accurately, they would range in the 2 to 4 percent of sales range.

Accepted Answer

A) True 
 B)False

Question 6

Maroone Corporation reported the following operating costs and environmental quality costs for the past four years. Assume that all environmental quality costs are variable and that all changes in the quality cost ratios are due to an environmental cost reduction program.   What is the change in environmental costs from 2015 to 2016?

Accepted Answer

A)  $840,000 
B)  $902,000 
C)  $58,000 
D)  $62,000 
A)  $840,000 
B)  $902,000 
C)  $58,000 
D)  $62,000

Question 7

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, external failure costs are what percentage of operating costs?

Accepted Answer

A)  2.67% 
B)  1.83% 
C)  1.38% 
D)  0.93% 
A)  2.67% 
B)  1.83% 
C)  1.38% 
D)  0.93%

Question 8

An example of additional revenue that might result from environmental activities is

Accepted Answer

A)  revenue from recycling. 
B)  finding new applications for waste. 
C)  increased sales as a result of improved environmental image. 
D)  all of the above. 
A)  revenue from recycling. 
B)  finding new applications for waste. 
C)  increased sales as a result of improved environmental image. 
D)  all of the above.

Question 9

Environmental costs involves the damage to the environment by inefficient use of materials and energy.

Accepted Answer

A) True 
 B)False

Question 10

Amenities Corporation reported the following operating costs and environmental quality costs for the past four years. Assume that all environmental quality costs are variable and that all changes in the quality cost ratios are due to an environmental cost reduction program.
   Required:

Accepted Answer

The answer of Amenities Corporation reported the following operating costs...

Question 11

Which of the following is NOT an internal failure activity?

Accepted Answer

A)  treating and disposing of toxic waste 
B)  maintaining pollution equipment 
C)  licensing facilities for producing contaminants 
D)  cleaning up a polluted lake 
A)  treating and disposing of toxic waste 
B)  maintaining pollution equipment 
C)  licensing facilities for producing contaminants 
D)  cleaning up a polluted lake

Question 12

What is a reason interim quality standards goals are utilized?

Accepted Answer

A)  For many companies, materials and services purchased are from outside parties and those suppliers need to be involved in the quality program. 
B)  Internal employees of the company need to develop confidence of a zero-defect program. 
C)  Interim standards allow management to see progress towards the long-term goal. 
D)  all of the above 
A)  For many companies, materials and services purchased are from outside parties and those suppliers need to be involved in the quality program. 
B)  Internal employees of the company need to develop confidence of a zero-defect program. 
C)  Interim standards allow management to see progress towards the long-term goal. 
D)  all of the above

Question 13

The cost of processes which produce, market, delivers, and dispose of products are called __________ costs.

Accepted Answer

environmen

Question 14

Carborundum Corporation reported the following operating costs and environmental quality costs for the past four years. Assume that all environmental quality costs are variable and that all changes in the quality cost ratios are due to an environmental cost reduction program.   What is the change in environmental costs from 2016 to 2017?

Accepted Answer

A)  $12,000 
B)  $37,000 
C)  $41,000 
D)  $672,000 
A)  $12,000 
B)  $37,000 
C)  $41,000 
D)  $672,000

Question 15

The following information pertains to Longhorn Company for 2014:   Quality costs are what percentage of sales?

Accepted Answer

A)  2.5% 
B)  6.0% 
C)  15.0% 
D)  23.5% 
A)  2.5% 
B)  6.0% 
C)  15.0% 
D)  23.5%

Question 16

Quality training programs are classified as

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 17

The following information pertains to Molotov, Inc., for 2014:   If quality costs were reduced to 2.5 percent of sales, profits would increase by

Accepted Answer

A)  $1,000,000. 
B)  $850,000. 
C)  $500,000. 
D)  $250,000. 
A)  $1,000,000. 
B)  $850,000. 
C)  $500,000. 
D)  $250,000.

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, prevention costs are what percentage of operating costs?

Accepted Answer

A)  0.10% 
B)  0.90% 
C)  1.10% 
D)  0.55% 
A)  0.10% 
B)  0.90% 
C)  1.10% 
D)  0.55%

Question 19

In an environmental cost report, environmental costs are grouped into categories and then each category of environmental costs is expressed as a percentage of

Accepted Answer

A)  total quality costs. 
B)  total costs. 
C)  total sales. 
D)  total operating costs. 
A)  total quality costs. 
B)  total costs. 
C)  total sales. 
D)  total operating costs.

Question 20

Figure 14-4 At the beginning of the year, Marinov Corporation initiated a quality improvement program. The program was successful in reducing scrap and rework costs. To help assess the impact of the quality improvement program, the following data were collected for the current and preceding years:
  Refer to Figure 14-4. For the current year, internal failure costs are what percentage of sales?

Accepted Answer

A)  4.00% 
B)  2.90% 
C)  2.50% 
D)  1.50% 
A)  4.00% 
B)  2.90% 
C)  2.50% 
D)  1.50%

A graph that plots quality costs against time is the

Which of the following statements is true about ISO 9000?

Product inspection is a(n)

As part of its environmental cost reporting system, McClaren Company tracks its total environmental costs. Consider the cost and sales data given: What is the environmental costs as a percentage of sales for 2014?

If costs of quality were evaluated accurately, they would range in the 2 to 4 percent of sales range.

An example of additional revenue that might result from environmental activities is

Environmental costs involves the damage to the environment by inefficient use of materials and energy.

Amenities Corporation reported the following operating costs and environmental quality costs for the past four years. Assume that all environmental quality costs are variable and that all changes in the quality cost ratios are due to an environmental cost reduction program. Required:

Which of the following is NOT an internal failure activity?

What is a reason interim quality standards goals are utilized?

The cost of processes which produce, market, delivers, and dispose of products are called __________ costs.

The following information pertains to Longhorn Company for 2014: Quality costs are what percentage of sales?

Quality training programs are classified as

The following information pertains to Molotov, Inc., for 2014: If quality costs were reduced to 2.5 percent of sales, profits would increase by

In an environmental cost report, environmental costs are grouped into categories and then each category of environmental costs is expressed as a percentage of

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

A graph that plots quality costs against time is the

Which of the following statements is true about ISO 9000?

Product inspection is a(n)

As part of its environmental cost reporting system, McClaren Company tracks its total environmental costs. Consider the cost and sales data given: What is the environmental costs as a percentage of sales for 2014?

If costs of quality were evaluated accurately, they would range in the 2 to 4 percent of sales range.

An example of additional revenue that might result from environmental activities is

Environmental costs involves the damage to the environment by inefficient use of materials and energy.

Amenities Corporation reported the following operating costs and environmental quality costs for the past four years. Assume that all environmental quality costs are variable and that all changes in the quality cost ratios are due to an environmental cost reduction program. Required:

Which of the following is NOT an internal failure activity?

What is a reason interim quality standards goals are utilized?

The cost of processes which produce, market, delivers, and dispose of products are called __________ costs.

The following information pertains to Longhorn Company for 2014: Quality costs are what percentage of sales?

Quality training programs are classified as

The following information pertains to Molotov, Inc., for 2014: If quality costs were reduced to 2.5 percent of sales, profits would increase by

In an environmental cost report, environmental costs are grouped into categories and then each category of environmental costs is expressed as a percentage of

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