Question 1

Lower sales due to poor product performance is an example of

Accepted Answer

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

Question 2

At the beginning of the year, Randy 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:
   Required:

Accepted Answer

@#IMG-DLM&_TB2043_00

Question 3

_______________ uses customer surveys and interviews by sales personnel to estimate future profit losses.

Accepted Answer

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

Question 4

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.As a result of quality improvements, profits have increased by

Accepted Answer

A)  $97,500. 
B)  $61,500. 
C)  $22,500. 
D)  $15,000. 
A)  $97,500. 
B)  $61,500. 
C)  $22,500. 
D)  $15,000.

Question 5

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 the average loss per unit?

Accepted Answer

A)  $1.44 
B)  $1.80 
C)  $7.20 
D)  $10.00 
A)  $1.44 
B)  $1.80 
C)  $7.20 
D)  $10.00

Question 6

As part of its environmental cost reporting system, Jackson Company tracks its total environmental costs.Consider the cost and sales data given:  
- What is the environmental costs as a percentage of sales for 2011?

Accepted Answer

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

Question 7

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 8

_______________ is the assignment of private and societal costs to products.

Accepted Answer

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

Question 9

Opie 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 2011 to 2012?

Accepted Answer

A)  $37,000 
B)  $41,000 
C)  $12,000 
D)  $750,000 
A)  $37,000 
B)  $41,000 
C)  $12,000 
D)  $750,000

Question 10

At the beginning of the year, Grant 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, detection costs are what percentage of operating costs?

Accepted Answer

A)  1.40% 
B)  1.00% 
C)  0.14% 
D)  0.40% 
A)  1.40% 
B)  1.00% 
C)  0.14% 
D)  0.40%

Question 11

Figure 14-8 Taylor 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 pollution control cost per unit of Product A2?

Accepted Answer

A)  $0.1120 
B)  $0.0280 
C)  $0.0112 
D)  $0.0448 
A)  $0.1120 
B)  $0.0280 
C)  $0.0112 
D)  $0.0448

Question 12

The quality report that compares the current actual quality costs with short-run budgeted quality targets 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 13

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 14

Figure 14-7 At the beginning of the year, Andrew 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:
  
-Refer to Figure 14-7.For the current year, internal failure costs are what percentage of operating costs?

Accepted Answer

A)  4.25% 
B)  3.25% 
C)  2.00% 
D)  1.25% 
A)  4.25% 
B)  3.25% 
C)  2.00% 
D)  1.25%

Question 15

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 fines cost per unit for toxic releases of Product X1?

Accepted Answer

A)  $0.040 
B)  $0.008 
C)  $0.100 
D)  $0.080 
A)  $0.040 
B)  $0.008 
C)  $0.100 
D)  $0.080

Question 16

A goal based on short-run quality goals is the

Accepted Answer

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

Question 17

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.As a result of quality improvements, profits have increased by

Accepted Answer

A)  $400,000. 
B)  $58,000. 
C)  $186,000. 
D)  $244,000. 
A)  $400,000. 
B)  $58,000. 
C)  $186,000. 
D)  $244,000.

Question 18

An example of a prevention cost is

Accepted Answer

A)  field testing. 
B)  quality audits. 
C)  reinspection. 
D)  repair costs. 
A)  field testing. 
B)  quality audits. 
C)  reinspection. 
D)  repair costs.

Question 19

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, internal failure costs are what percentage of sales?

Accepted Answer

A)  9.30% 
B)  5.00% 
C)  2.50% 
D)  7.50% 
A)  9.30% 
B)  5.00% 
C)  2.50% 
D)  7.50%

Question 20

The following information pertains to Bull Company for 2011:   
-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%

Lower sales due to poor product performance is an example of

At the beginning of the year, Randy 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: Required:

_______________ uses customer surveys and interviews by sales personnel to estimate future profit losses.

As part of its environmental cost reporting system, Jackson Company tracks its total environmental costs.Consider the cost and sales data given: - What is the environmental costs as a percentage of sales for 2011?

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

_______________ is the assignment of private and societal costs to products.

The quality report that compares the current actual quality costs with short-run budgeted quality targets is the

The costs of a consumer complaint department are

A goal based on short-run quality goals is the

An example of a prevention cost is

The following information pertains to Bull Company for 2011: -Quality costs are what percentage of sales?

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

Lower sales due to poor product performance is an example of

At the beginning of the year, Randy 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: Required:

_______________ uses customer surveys and interviews by sales personnel to estimate future profit losses.

As part of its environmental cost reporting system, Jackson Company tracks its total environmental costs.Consider the cost and sales data given: - What is the environmental costs as a percentage of sales for 2011?

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

_______________ is the assignment of private and societal costs to products.

The quality report that compares the current actual quality costs with short-run budgeted quality targets is the

The costs of a consumer complaint department are

A goal based on short-run quality goals is the

An example of a prevention cost is

The following information pertains to Bull Company for 2011: -Quality costs are what percentage of sales?

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