Question 1

On a balanced scorecard,the measure of profit margin would most likely be an example of a performance measure in the:

Accepted Answer

A) financial dimension 
B) customer dimension 
C) internal business process dimension 
D) learning and growth dimension 
A) financial dimension 
B) customer dimension 
C) internal business process dimension 
D) learning and growth dimension A

Question 2

Procurement inspection,processing control (inspection),design,quality training,and machine inspection are all examples of

Accepted Answer

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

Question 3

Control charts are management tools that

Accepted Answer

A) depict variations in a process and its behavior over time. 
B) help management distinguish between random or routine variations in quality. 
C) direct attention to variations that management should investigate. 
D) All of the answers are correct. 
A) depict variations in a process and its behavior over time. 
B) help management distinguish between random or routine variations in quality. 
C) direct attention to variations that management should investigate. 
D) All of the answers are correct. D

Question 4

Which of the following prestigious,internationally renowned awards was created in Japan?

Accepted Answer

A) The Baldrige Award. 
B) The Deming Prize. 
C) The ISO 9000 Award. 
D) The AMA Prize. 
A) The Baldrige Award. 
B) The Deming Prize. 
C) The ISO 9000 Award. 
D) The AMA Prize.

Question 5

Which critical success factor relates to the expectations the customer has about all aspects,both tangible and intangible,of the product's purchase and use?

Accepted Answer

A) Service 
B) Quality 
C) Quantity 
D) Cost 
A) Service 
B) Quality 
C) Quantity 
D) Cost

Question 6

Distinguish between the traditional view of quality and the quality-based view.

Accepted Answer

Improving quality has become one of the

Question 7

Traditional managerial accounting systems need to be modified to support total quality management by

Accepted Answer

A) reporting financial and nonfinancial information in more detail to aid in problem solving. 
B) having line employees collect financial and nonfinancial information and use it to get timely feedback and solve problems. 
C) basing rewards on quality and customer satisfaction measures of performance. 
D) All of the answers are correct. 
A) reporting financial and nonfinancial information in more detail to aid in problem solving. 
B) having line employees collect financial and nonfinancial information and use it to get timely feedback and solve problems. 
C) basing rewards on quality and customer satisfaction measures of performance. 
D) All of the answers are correct.

Question 8

Response time improvements often drive simultaneous improvements in quality and productivity.Analysts focus on which of the following aspects of time?

Accepted Answer

A) new-product development time and operational measures of time. 
B) new-product research time and operational measures of time. 
C) new-product strategy time and operational measures of time. 
D) new-product research time and response measures of time. 
A) new-product development time and operational measures of time. 
B) new-product research time and operational measures of time. 
C) new-product strategy time and operational measures of time. 
D) new-product research time and response measures of time.

Question 9

Which of the following measures of time indicate the speed and reliability with which organizations supply products and services to customers?

Accepted Answer

A) Strategic 
B) Support 
C) Intelligent 
D) Operational 
A) Strategic 
B) Support 
C) Intelligent 
D) Operational

Question 10

Traditional managerial accounting systems need to be modified to support total quality management by

Accepted Answer

A) reporting nonfinancial information to aid in problem solving,not just financial information. 
B) having line employees collect financial and nonfinancial information and use it to get timely feedback and solve problems. 
C) reporting more detailed information than that found in traditional managerial accounting systems. 
D) All of the answers are correct. 
A) reporting nonfinancial information to aid in problem solving,not just financial information. 
B) having line employees collect financial and nonfinancial information and use it to get timely feedback and solve problems. 
C) reporting more detailed information than that found in traditional managerial accounting systems. 
D) All of the answers are correct.

Question 11

Which of the following is not an example of prevention costs?

Accepted Answer

A) Procurement inspection 
B) Field testing 
C) Processing control 
D) Designing production processes 
A) Procurement inspection 
B) Field testing 
C) Processing control 
D) Designing production processes

Question 12

Repairing a defect found after a product has been delivered to the customer is an example of which of the following type of cost?

Accepted Answer

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

Question 13

Which of the following is an example of the costs incurred by a tire company for replacing defective tires?

Accepted Answer

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

Question 14

Why do firms make trade-offs in quality control costs and failure costs?

Accepted Answer

Trade-offs must be made in and among the

Question 15

Which of the following statements is true?

Accepted Answer

A) In the long run the price of a product must cover its costs or the organization will no longer make the product. 
B) In the long run the price of a product must cover its sunk costs or the organization will no longer make the product. 
C) In the long run the price of a product must cover its internal failure costs or the organization will no longer make the product. 
D) In the long run the price of a product must cover its external failure costs or the organization will no longer make the product. 
A) In the long run the price of a product must cover its costs or the organization will no longer make the product. 
B) In the long run the price of a product must cover its sunk costs or the organization will no longer make the product. 
C) In the long run the price of a product must cover its internal failure costs or the organization will no longer make the product. 
D) In the long run the price of a product must cover its external failure costs or the organization will no longer make the product.

Question 16

Costs incurred for detecting nonconforming products and services before delivering them to customers are called

Accepted Answer

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

Question 17

What does a quality control chart reflect?

Accepted Answer

A) The manager who is in charge on a particular day. 
B) Process variations that need to be analyzed. 
C) Which product is controlling the market. 
D) Which employee is to engage in strategic cost management techniques. 
A) The manager who is in charge on a particular day. 
B) Process variations that need to be analyzed. 
C) Which product is controlling the market. 
D) Which employee is to engage in strategic cost management techniques.

Question 18

The international standards that promote the importance of accounting for environmental costs (such as hazardous waste disposal,waste treatment,and periodic environmental inspections),and communicating these costs to management and people outside the organization are

Accepted Answer

A) ISO 4000. 
B) ISO 9000. 
C) ISO 14000. 
D) ISO 24000. 
A) ISO 4000. 
B) ISO 9000. 
C) ISO 14000. 
D) ISO 24000.

Question 19

Reporting costs of quality.Nichols Corporation manufactures freezers.The following table presents financial information for two years.
   
Required:
Using the data,prepare a cost of quality report for Year 1 and Year 2.
(Nichols Corporation;Trading off costs of quality. )

Accepted Answer

NICHOLS CORPORATION

Question 20

Which of the following was created by Congress in 1987 to recognize U.S.firms with outstanding records of quality improvement and quality management?

Accepted Answer

A) ISO 9000 certification. 
B) Deming Prize. 
C) Baldrige Award. 
D) CQM Prize. 
A) ISO 9000 certification. 
B) Deming Prize. 
C) Baldrige Award. 
D) CQM Prize.

On a balanced scorecard,the measure of profit margin would most likely be an example of a performance measure in the:

Procurement inspection,processing control (inspection),design,quality training,and machine inspection are all examples of

Control charts are management tools that

Which of the following prestigious,internationally renowned awards was created in Japan?

Which critical success factor relates to the expectations the customer has about all aspects,both tangible and intangible,of the product's purchase and use?

Distinguish between the traditional view of quality and the quality-based view.

Traditional managerial accounting systems need to be modified to support total quality management by

Response time improvements often drive simultaneous improvements in quality and productivity.Analysts focus on which of the following aspects of time?

Which of the following measures of time indicate the speed and reliability with which organizations supply products and services to customers?

Traditional managerial accounting systems need to be modified to support total quality management by

Which of the following is not an example of prevention costs?

Repairing a defect found after a product has been delivered to the customer is an example of which of the following type of cost?

Which of the following is an example of the costs incurred by a tire company for replacing defective tires?

Why do firms make trade-offs in quality control costs and failure costs?

Which of the following statements is true?

Costs incurred for detecting nonconforming products and services before delivering them to customers are called

What does a quality control chart reflect?

The international standards that promote the importance of accounting for environmental costs (such as hazardous waste disposal,waste treatment,and periodic environmental inspections),and communicating these costs to management and people outside the organization are

Reporting costs of quality.Nichols Corporation manufactures freezers.The following table presents financial information for two years. Required: Using the data,prepare a cost of quality report for Year 1 and Year 2. (Nichols Corporation;Trading off costs of quality. )

Which of the following was created by Congress in 1987 to recognize U.S.firms with outstanding records of quality improvement and quality management?

Fundamental Concepts

Measuring Product Costs

Activity-Based Management

Cost Drivers and Cost Behavior

Financial Modeling for Short-Term Decision Making

Differential Cost Analysis for Operating Decisions

Capital Expenditure Decisions

Profit Planning and Budgeting

Profit and Cost Center Performance Evaluation

Investment Center Performance Evaluation

Incentive Issues

Allocating Costs to Responsibility Centers

Filters

Exam 4: Strategic Management of Costs,quality,and Time

On a balanced scorecard,the measure of profit margin would most likely be an example of a performance measure in the:

Procurement inspection,processing control (inspection),design,quality training,and machine inspection are all examples of

Control charts are management tools that

Which of the following prestigious,internationally renowned awards was created in Japan?

Which critical success factor relates to the expectations the customer has about all aspects,both tangible and intangible,of the product's purchase and use?

Distinguish between the traditional view of quality and the quality-based view.

Traditional managerial accounting systems need to be modified to support total quality management by

Response time improvements often drive simultaneous improvements in quality and productivity.Analysts focus on which of the following aspects of time?

Which of the following measures of time indicate the speed and reliability with which organizations supply products and services to customers?

Traditional managerial accounting systems need to be modified to support total quality management by

Which of the following is not an example of prevention costs?

Repairing a defect found after a product has been delivered to the customer is an example of which of the following type of cost?

Which of the following is an example of the costs incurred by a tire company for replacing defective tires?

Why do firms make trade-offs in quality control costs and failure costs?

Which of the following statements is true?

Costs incurred for detecting nonconforming products and services before delivering them to customers are called

What does a quality control chart reflect?

The international standards that promote the importance of accounting for environmental costs (such as hazardous waste disposal,waste treatment,and periodic environmental inspections),and communicating these costs to management and people outside the organization are

Reporting costs of quality.Nichols Corporation manufactures freezers.The following table presents financial information for two years. Required: Using the data,prepare a cost of quality report for Year 1 and Year 2. (Nichols Corporation;Trading off costs of quality. )

Which of the following was created by Congress in 1987 to recognize U.S.firms with outstanding records of quality improvement and quality management?

Fundamental Concepts

Measuring Product Costs

Activity-Based Management

Cost Drivers and Cost Behavior

Financial Modeling for Short-Term Decision Making

Differential Cost Analysis for Operating Decisions

Capital Expenditure Decisions

Profit Planning and Budgeting

Profit and Cost Center Performance Evaluation

Investment Center Performance Evaluation

Incentive Issues

Allocating Costs to Responsibility Centers

Filters