Question 1

The following information pertains to Taft, Inc., for 2011:   
-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 2

Which of the following is an example of a physical measure of quality?

Accepted Answer

A)  billing errors 
B)  number of defects per unit 
C)  contract errors 
D)  all of these 
A)  billing errors 
B)  number of defects per unit 
C)  contract errors 
D)  all of these

Question 3

Which of the following is NOT an example of environmental detection activities?

Accepted Answer

A)  recycling scrap 
B)  auditing environmental activities 
C)  testing for contamination 
D)  inspecting products and processes 
A)  recycling scrap 
B)  auditing environmental activities 
C)  testing for contamination 
D)  inspecting products and processes

Question 4

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 5

Using the abbreviations listed below, indicate for each of the costs whether the cost should be classified as:

Accepted Answer

The answer of Using the abbreviations listed below, indicate for...

Question 6

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, internal failure costs are what percentage of operating costs?

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%

Question 7

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 2012 to 2013?

Accepted Answer

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

Question 8

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 fines cost per unit for toxic releases of Product A1?

Accepted Answer

A)  $0.020 
B)  $0.004 
C)  $0.050 
D)  $0.040 
A)  $0.020 
B)  $0.004 
C)  $0.050 
D)  $0.040

Question 9

Carlson Chemical produces a number of chemical products, two of which are Product A and Product B.The controller and environmental manager have identified the following environmental activities and costs associated with the two products:
   Required:

Accepted Answer

@#IMG-DLM&_TB2043_00

Question 10

According to the robust view, the strategy for reducing quality costs is NOT based on which assumption?

Accepted Answer

A)  For every failure there is a root cause. 
B)  Causes are preventable. 
C)  Prevention costs must be balanced with the benefits. 
D)  Continually redirecting prevention efforts will lead to further improvements. 
A)  For every failure there is a root cause. 
B)  Causes are preventable. 
C)  Prevention costs must be balanced with the benefits. 
D)  Continually redirecting prevention efforts will lead to further improvements.

Question 11

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, external failure costs are what percentage of operating costs?

Accepted Answer

A)  4.25% 
B)  2.75% 
C)  2.50% 
D)  1.50% 
A)  4.25% 
B)  2.75% 
C)  2.50% 
D)  1.50%

Question 12

Define environmental costs and identify the four categories of environmental costs.Give an example of each category.

Accepted Answer

Environmental costs are incurred because

Question 13

_______________ are those incurred and paid for by the firm.

Accepted Answer

A)  Realized external failure costs 
B)  Unrealized external failure costs 
C)  Realized internal failure costs 
D)  Unrealized internal failure costs 
A)  Realized external failure costs 
B)  Unrealized external failure costs 
C)  Realized internal failure costs 
D)  Unrealized internal failure costs

Question 14

Figure 14-4 At the beginning of the year, John 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, external failure costs are what percentage of sales?

Accepted Answer

A)  4.25% 
B)  2.75% 
C)  2.50% 
D)  1.50% 
A)  4.25% 
B)  2.75% 
C)  2.50% 
D)  1.50%

Question 15

In quality analysis, robustness means the products

Accepted Answer

A)  do not vary from the target value. 
B)  do have a great deal of variation from the target value. 
C)  do not have high customer satisfaction. 
D)  do have high customer satisfaction. 
A)  do not vary from the target value. 
B)  do have a great deal of variation from the target value. 
C)  do not have high customer satisfaction. 
D)  do have high customer satisfaction.

Question 16

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, appraisal costs are what percentage of sales?

Accepted Answer

A)  1.55% 
B)  1.80% 
C)  0.25% 
D)  9.30% 
A)  1.55% 
B)  1.80% 
C)  0.25% 
D)  9.30%

Question 17

_______________ is the assignment of only private costs to individual 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

The following information pertains to Taft, Inc., for 2011: -If quality costs were reduced to 2.5 percent of sales, profits would increase by

Which of the following is an example of a physical measure of quality?

Which of the following is NOT an example of environmental detection activities?

Which of the following is NOT an internal failure activity?

Using the abbreviations listed below, indicate for each of the costs whether the cost should be classified as:

Carlson Chemical produces a number of chemical products, two of which are Product A and Product B.The controller and environmental manager have identified the following environmental activities and costs associated with the two products: Required:

According to the robust view, the strategy for reducing quality costs is NOT based on which assumption?

Define environmental costs and identify the four categories of environmental costs.Give an example of each category.

_______________ are those incurred and paid for by the firm.

In quality analysis, robustness means the products

_______________ is the assignment of only private costs to individual products.

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

The following information pertains to Taft, Inc., for 2011: -If quality costs were reduced to 2.5 percent of sales, profits would increase by

Which of the following is an example of a physical measure of quality?

Which of the following is NOT an example of environmental detection activities?

Which of the following is NOT an internal failure activity?

Using the abbreviations listed below, indicate for each of the costs whether the cost should be classified as:

Carlson Chemical produces a number of chemical products, two of which are Product A and Product B.The controller and environmental manager have identified the following environmental activities and costs associated with the two products: Required:

According to the robust view, the strategy for reducing quality costs is NOT based on which assumption?

Define environmental costs and identify the four categories of environmental costs.Give an example of each category.

_______________ are those incurred and paid for by the firm.

In quality analysis, robustness means the products

_______________ is the assignment of only private costs to individual products.

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