Question 1

Which of the following is NOT an example of a quality performance report?

Accepted Answer

A)  quality design report 
B)  interim standard report 
C)  multiple-period trend report 
D)  long-range report 
A)  quality design report 
B)  interim standard report 
C)  multiple-period trend report 
D)  long-range report A

Question 2

Randall Corporation reported the following sales and quality costs for the past four years.Assume that all quality costs are variable and that all changes in the quality cost ratios are due to a quality improvement program.
   Required:

Accepted Answer

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Question 3

The following information pertains to Harrison Corp.for 2011:   Quality costs are what percentage of sales?

Accepted Answer

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

Question 4

Inspection labor costs 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 5

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 6

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 7

Figure 14-5 At the beginning of the year, Jim Jackson 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 14-5.For the current year, prevention costs are what percentage of sales?

Accepted Answer

A)  2.50% 
B)  9.30% 
C)  0.25% 
D)  1.80% 
A)  2.50% 
B)  9.30% 
C)  0.25% 
D)  1.80%

Question 8

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 9

Figure 14-3 At the beginning of the year, Grant Company 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 14-3.For the current year, prevention costs are what percentage of sales?

Accepted Answer

A)  1.50% 
B)  0.65% 
C)  0.15% 
D)  0.05% 
A)  1.50% 
B)  0.65% 
C)  0.15% 
D)  0.05%

Question 10

Improving quality is an important competitive issue for

Accepted Answer

A)  manufacturing firms only. 
B)  service firms only. 
C)  supplying firms only. 
D)  all firms. 
A)  manufacturing firms only. 
B)  service firms only. 
C)  supplying firms only. 
D)  all firms.

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

Figure 14-1 A company produces screw fittings.It is determined that T = 1 inch in diameter.Specification limits allow a variation of plus or minus 0.5 inches.Products produced at values beyond the specification limits lose $10.A sample of five units produced showed the following values:
 
- Refer to Figure 14-1.What is k, the constant, in the Taguchi loss function?

Accepted Answer

A)  0.25 
B)  2.0 
C)  2.5 
D)  40 
A)  0.25 
B)  2.0 
C)  2.5 
D)  40

Question 13

Managers need quality cost information for which decisions?

Accepted Answer

A)  strategic pricing 
B)  cost volume profit analysis 
C)  cost benefit of quality improvement programs 
D)  all of these 
A)  strategic pricing 
B)  cost volume profit analysis 
C)  cost benefit of quality improvement programs 
D)  all of these

Question 14

If management is reviewing a multiple-period trend graph that shows individual quality cost categories, what might they expect to see?

Accepted Answer

A)  Overall quality costs decreasing as a percentage of sales with prevention costs, as a category, increasing over time. 
B)  Overall quality costs decreasing as a percentage of sales with all categories decreasing over time. 
C)  Overall quality costs increasing as a percentage of sales with external failure costs decreasing and prevention costs increasing. 
D)  Overall quality costs remaining the same as a percentage of sales with prevention and appraisal costs increasing over time. 
A)  Overall quality costs decreasing as a percentage of sales with prevention costs, as a category, increasing over time. 
B)  Overall quality costs decreasing as a percentage of sales with all categories decreasing over time. 
C)  Overall quality costs increasing as a percentage of sales with external failure costs decreasing and prevention costs increasing. 
D)  Overall quality costs remaining the same as a percentage of sales with prevention and appraisal costs increasing over time.

Question 15

Figure 14-2 At the beginning of the year, Andrew Company 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 14-2.For the current year, appraisal costs are what percentage of sales?

Accepted Answer

A)  3.333% 
B)  0.833% 
C)  0.500% 
D)  0.333% 
A)  3.333% 
B)  0.833% 
C)  0.500% 
D)  0.333%

Question 16

Which of the following is NOT a dimension of quality?

Accepted Answer

A)  performance 
B)  durability 
C)  reliability 
D)  All of these are dimensions of quality. 
A)  performance 
B)  durability 
C)  reliability 
D)  All of these are dimensions of quality.

Question 17

In 2013, Shelby Foods instituted a quality improvement program.At the end of 2014, the management of the corporation requested a report to show the amount saved by the measures taken during the year.The actual sales and actual quality costs for 2013 and 2014 are as follows:

Accepted Answer

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Question 18

Hanna Company produces a number of chemical products, two of which are Product X1 and Product X2.The controller and environmental manager have identified the following environmental activities and costs associated with the two products:  
- What is the pollution control cost per unit of Product X2?

Accepted Answer

A)  $0.2240 
B)  $0.0560 
C)  $0.0224 
D)  $0.0896 
A)  $0.2240 
B)  $0.0560 
C)  $0.0224 
D)  $0.0896

Question 19

What does quality mean and how has improving quality increased firm value?

Accepted Answer

A quality product is one that meets or e

Question 20

A defective product is one that does NOT

Accepted Answer

A)  appeal to customers. 
B)  pass inspection. 
C)  satisfy customers. 
D)  conform to specifications. 
A)  appeal to customers. 
B)  pass inspection. 
C)  satisfy customers. 
D)  conform to specifications.

Which of the following is NOT an example of a quality performance report?

Randall Corporation reported the following sales and quality costs for the past four years.Assume that all quality costs are variable and that all changes in the quality cost ratios are due to a quality improvement program. Required:

The following information pertains to Harrison Corp.for 2011: Quality costs are what percentage of sales?

Inspection labor costs are classified as

Quality cost performance reports have two essential elements.

Warranty work is a(n)

Quality experts maintain that total quality costs should NOT exceed

Improving quality is an important competitive issue for

An environmental financial statement would NOT contain information on

Managers need quality cost information for which decisions?

If management is reviewing a multiple-period trend graph that shows individual quality cost categories, what might they expect to see?

Which of the following is NOT a dimension of quality?

In 2013, Shelby Foods instituted a quality improvement program.At the end of 2014, the management of the corporation requested a report to show the amount saved by the measures taken during the year.The actual sales and actual quality costs for 2013 and 2014 are as follows:

Hanna Company produces a number of chemical products, two of which are Product X1 and Product X2.The controller and environmental manager have identified the following environmental activities and costs associated with the two products: - What is the pollution control cost per unit of Product X2?

What does quality mean and how has improving quality increased firm value?

A defective product is one that does NOT

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

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

Which of the following is NOT an example of a quality performance report?

Randall Corporation reported the following sales and quality costs for the past four years.Assume that all quality costs are variable and that all changes in the quality cost ratios are due to a quality improvement program. Required:

The following information pertains to Harrison Corp.for 2011: Quality costs are what percentage of sales?

Inspection labor costs are classified as

Quality cost performance reports have two essential elements.

Warranty work is a(n)

Quality experts maintain that total quality costs should NOT exceed

Improving quality is an important competitive issue for

An environmental financial statement would NOT contain information on

Managers need quality cost information for which decisions?

If management is reviewing a multiple-period trend graph that shows individual quality cost categories, what might they expect to see?

Which of the following is NOT a dimension of quality?

In 2013, Shelby Foods instituted a quality improvement program.At the end of 2014, the management of the corporation requested a report to show the amount saved by the measures taken during the year.The actual sales and actual quality costs for 2013 and 2014 are as follows:

Hanna Company produces a number of chemical products, two of which are Product X1 and Product X2.The controller and environmental manager have identified the following environmental activities and costs associated with the two products: - What is the pollution control cost per unit of Product X2?

What does quality mean and how has improving quality increased firm value?

A defective product is one that does NOT

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

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