Question 1

What tools do firms use to identify quality control problems?

Accepted Answer

Firms use control charts,cause-and-effec

Question 2

Which of the following is(are)potential causes of defects in cause and effect analysis?

Accepted Answer

A) human factors. 
B) methods and design factors. 
C) machine related and materials/components factors. 
D) All of the answers are correct. 
A) human factors. 
B) methods and design factors. 
C) machine related and materials/components factors. 
D) All of the answers are correct.

Question 3

On a balanced scorecard,the measure of economic value-added 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

Question 4

Which of the following statements best describes the traditional view of quality?

Accepted Answer

A) The traditional view of quality assumes that improving quality always requires increasing costs. 
B) The traditional view of quality holds that firms can reduce total costs by producing lower-quality goods 
C) The traditional view of quality holds that firms can reduce total costs by tolerating some level of defective goods. 
D) All of the answers are correct. 
A) The traditional view of quality assumes that improving quality always requires increasing costs. 
B) The traditional view of quality holds that firms can reduce total costs by producing lower-quality goods 
C) The traditional view of quality holds that firms can reduce total costs by tolerating some level of defective goods. 
D) All of the answers are correct.

Question 5

Which of the following is used to measure on-time performance?

Accepted Answer

A) The number of on-time deliveries. 
B) The ratio of on-time deliveries to total deliveries. 
C) The ratio of total deliveries to on-time deliveries. 
D) The number of total deliveries. 
A) The number of on-time deliveries. 
B) The ratio of on-time deliveries to total deliveries. 
C) The ratio of total deliveries to on-time deliveries. 
D) The number of total deliveries.

Question 6

Management tools which provide diagnostic signals and identify potential causes of a problem(s)are called

Accepted Answer

A) control charts. 
B) cause-and-effect charts. 
C) Pareto charts. 
D) All of the answers are correct. 
A) control charts. 
B) cause-and-effect charts. 
C) Pareto charts. 
D) All of the answers are correct.

Question 7

Break-even time.Clarkson Company's research and development department is presenting a proposal for new-product research.The new product will require research,development,and design investments of $500,000 (discounted cash flow).Sales will begin after two years and will generate an annual discounted net cash flow of $200,000 starting in Year 3.
(Clarkson Company;Breakeven time. )

Accepted Answer

Breakeven Time
= (Investment F

Question 8

Which is the best stage in the Value Chain to deal with unhappy customers?

Accepted Answer

A) Customer Service 
B) Marketing 
C) Distribution 
D) Research & Development 
A) Customer Service 
B) Marketing 
C) Distribution 
D) Research & Development

Question 9

On a balanced scorecard,the measure of the product returns as percentage of sales 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

Question 10

Which is the best stage in the Value Chain to identify quality problems?

Accepted Answer

A) Research & Development 
B) Production 
C) Marketing 
D) Customer Service 
A) Research & Development 
B) Production 
C) Marketing 
D) Customer Service

Question 11

The quality based view

Accepted Answer

A) holds that high quality pays for itself. 
B) emphasizes constantly improving systems and processes. 
C) focuses on long-run profits 
D) All of the answers are correct. 
A) holds that high quality pays for itself. 
B) emphasizes constantly improving systems and processes. 
C) focuses on long-run profits 
D) All of the answers are correct.

Question 12

Which of the following are the two costs of controlling quality?

Accepted Answer

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

Question 13

Why does Just-in-time requires total quality management?

Accepted Answer

Companies using JIT find it re

Question 14

Vilfredo Pareto,an Italian economist and sociologist observed that approximately

Accepted Answer

A) 1 percent of activities cause 99 percent of the problems. 
B) 5 percent of activities cause 95 percent of the problems. 
C) 20 percent of activities cause 80 percent of the problems. 
D) 35 percent of activities cause 65 percent of the problems. 
A) 1 percent of activities cause 99 percent of the problems. 
B) 5 percent of activities cause 95 percent of the problems. 
C) 20 percent of activities cause 80 percent of the problems. 
D) 35 percent of activities cause 65 percent of the problems.

Question 15

Three Dog Bite Company:
 
Refer to Three Dog Bite Company.What are the total appraisal costs?

Accepted Answer

A) $ 375,000 
B) $1,550,000 
C) $1,275,000 
D) $2,025,000 
A) $ 375,000 
B) $1,550,000 
C) $1,275,000 
D) $2,025,000

Question 16

Break-even time.Weldon Company's research and development department is presenting a proposal for new-product research.The new product will require research,development,and design investments of $800,000 (discounted cash flow).Sales will begin after three years and will generate an annual discounted net cash flow of $200,000 starting in Year 3.
(Weldon Company;Breakeven time. )

Accepted Answer

Breakeven Time
= (Investment F

Question 17

Which statement is true concerning appraisal costs?

Accepted Answer

A) Appraisal costs are incurred to prevent defects in the products or services being produced. 
B) Appraisal costs are incurred to detect individual units of products that do not conform to specifications. 
C) Appraisal costs are incurred when the firm discovers nonconforming products and services before delivery to customers. 
D) Appraisal costs are incurred when the customers discover nonconforming products and services at delivery. 
A) Appraisal costs are incurred to prevent defects in the products or services being produced. 
B) Appraisal costs are incurred to detect individual units of products that do not conform to specifications. 
C) Appraisal costs are incurred when the firm discovers nonconforming products and services before delivery to customers. 
D) Appraisal costs are incurred when the customers discover nonconforming products and services at delivery.

Question 18

Many contracts require ISO 9000 certification.The ISO 9000 are international standards for

Accepted Answer

A) organization management. 
B) operations management. 
C) quality management. 
D) financial management. 
A) organization management. 
B) operations management. 
C) quality management. 
D) financial management.

Question 19

The critical success factor(s)that relate to meeting customer requirements do not include

Accepted Answer

A) service. 
B) quality. 
C) quantity. 
D) cost. 
A) service. 
B) quality. 
C) quantity. 
D) cost.

Question 20

When is a company is engaging in total quality management?

Accepted Answer

A) When the company has instilled a quality culture into the organization. 
B) When the company's products are in conformity with quality specifications. 
C) When the company's products meet industry standards. 
D) When the company can effectively compete for a distinguished quality award. 
A) When the company has instilled a quality culture into the organization. 
B) When the company's products are in conformity with quality specifications. 
C) When the company's products meet industry standards. 
D) When the company can effectively compete for a distinguished quality award.

What tools do firms use to identify quality control problems?

Which of the following is(are)potential causes of defects in cause and effect analysis?

On a balanced scorecard,the measure of economic value-added would most likely be an example of a performance measure in the:

Which of the following statements best describes the traditional view of quality?

Which of the following is used to measure on-time performance?

Management tools which provide diagnostic signals and identify potential causes of a problem(s)are called

Which is the best stage in the Value Chain to deal with unhappy customers?

On a balanced scorecard,the measure of the product returns as percentage of sales would most likely be an example of a performance measure in the:

Which is the best stage in the Value Chain to identify quality problems?

The quality based view

Which of the following are the two costs of controlling quality?

Why does Just-in-time requires total quality management?

Vilfredo Pareto,an Italian economist and sociologist observed that approximately

Three Dog Bite Company: Refer to Three Dog Bite Company.What are the total appraisal costs?

Which statement is true concerning appraisal costs?

Many contracts require ISO 9000 certification.The ISO 9000 are international standards for

The critical success factor(s)that relate to meeting customer requirements do not include

When is a company is engaging in total 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

What tools do firms use to identify quality control problems?

Which of the following is(are)potential causes of defects in cause and effect analysis?

On a balanced scorecard,the measure of economic value-added would most likely be an example of a performance measure in the:

Which of the following statements best describes the traditional view of quality?

Which of the following is used to measure on-time performance?

Management tools which provide diagnostic signals and identify potential causes of a problem(s)are called

Which is the best stage in the Value Chain to deal with unhappy customers?

On a balanced scorecard,the measure of the product returns as percentage of sales would most likely be an example of a performance measure in the:

Which is the best stage in the Value Chain to identify quality problems?

The quality based view

Which of the following are the two costs of controlling quality?

Why does Just-in-time requires total quality management?

Vilfredo Pareto,an Italian economist and sociologist observed that approximately

Three Dog Bite Company: Refer to Three Dog Bite Company.What are the total appraisal costs?

Which statement is true concerning appraisal costs?

Many contracts require ISO 9000 certification.The ISO 9000 are international standards for

The critical success factor(s)that relate to meeting customer requirements do not include

When is a company is engaging in total 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