Question 1

Prevention costs and appraisal costs are incurred in an effort to keep poor quality of conformance from occurring.

Accepted Answer

A) True 
 B)False

Question 2

Eacker Company's quality cost report is to be based on the following data:  
-What would be the total internal failure cost appearing on the quality cost report?

Accepted Answer

A) $156,000 
B) $134,000 
C) $143,000 
D) $158,000 
A) $156,000 
B) $134,000 
C) $143,000 
D) $158,000

Question 3

Eade Company's quality cost report is to be based on the following data:  
-What would be the total internal failure cost appearing on the quality cost report?

Accepted Answer

A) $54,000 
B) $75,000 
C) $80,000 
D) $121,000 
A) $54,000 
B) $75,000 
C) $80,000 
D) $121,000

Question 4

Godunov Company's quality cost report is to be based on the following data:     Required:
Prepare a Quality Cost Report in good form with separate sections for prevention costs,appraisal costs,internal failure costs,and external failure costs.

Accepted Answer

The answer of Godunov Company's quality cost report is to...

Question 5

Faast Company's quality cost report is to be based on the following data:  
-What would be the total prevention cost appearing on the quality cost report?

Accepted Answer

A) $139,000 
B) $69,000 
C) $178,000 
D) $148,000 
A) $139,000 
B) $69,000 
C) $178,000 
D) $148,000

Question 6

Faast Company's quality cost report is to be based on the following data:  
-What would be the total internal failure cost appearing on the quality cost report?

Accepted Answer

A) $211,000 
B) $99,000 
C) $102,000 
D) $158,000 
A) $211,000 
B) $99,000 
C) $102,000 
D) $158,000

Question 7

Eade Company's quality cost report is to be based on the following data:  
-What would be the total external failure cost appearing on the quality cost report?

Accepted Answer

A) $328,000 
B) $54,000 
C) $95,000 
D) $175,000 
A) $328,000 
B) $54,000 
C) $95,000 
D) $175,000

Question 8

Internal failure costs result when a defective product is used within the company.

Accepted Answer

A) True 
 B)False

Question 9

Eade Company's quality cost report is to be based on the following data:  
-What would be the total appraisal cost appearing on the quality cost report?

Accepted Answer

A) $70,000 
B) $119,000 
C) $110,000 
D) $97,000 
A) $70,000 
B) $119,000 
C) $110,000 
D) $97,000

Question 10

Which of the following would be classified as an internal failure cost on a quality cost report?

Accepted Answer

A) Supplies used in testing and inspection. 
B) Final product testing and inspection. 
C) Net cost of scrap. 
D) Depreciation of test equipment. 
A) Supplies used in testing and inspection. 
B) Final product testing and inspection. 
C) Net cost of scrap. 
D) Depreciation of test equipment.

Question 11

Faas Company's quality cost report is to be based on the following data:  
-What would be the total prevention cost appearing on the quality cost report?

Accepted Answer

A) $118,000 
B) $106,000 
C) $108,000 
D) $87,000 
A) $118,000 
B) $106,000 
C) $108,000 
D) $87,000

Question 12

Which of the following would be classified as a prevention cost on a quality cost report?

Accepted Answer

A) Lost sales arising from a reputation for poor quality. 
B) Final product testing and inspection. 
C) Net cost of spoilage. 
D) Quality data gathering,analysis,and reporting. 
A) Lost sales arising from a reputation for poor quality. 
B) Final product testing and inspection. 
C) Net cost of spoilage. 
D) Quality data gathering,analysis,and reporting.

Question 13

Which of the following would be classified as an external failure cost on a quality cost report?

Accepted Answer

A) Net cost of scrap. 
B) Product recalls. 
C) Rework labor and overhead. 
D) Downtime caused by quality problems. 
A) Net cost of scrap. 
B) Product recalls. 
C) Rework labor and overhead. 
D) Downtime caused by quality problems.

Question 14

An example of an internal failure cost is:

Accepted Answer

A) maintenance. 
B) inspection. 
C) rework. 
D) product recalls. 
A) maintenance. 
B) inspection. 
C) rework. 
D) product recalls.

Question 15

External failure costs result when a defective product is shipped to a customer.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following would be classified as an internal failure cost on a quality cost report?

Accepted Answer

A) Cost of field servicing and handling complaints. 
B) Rework labor and overhead. 
C) Supervision of testing and inspection activities. 
D) Final product testing and inspection. 
A) Cost of field servicing and handling complaints. 
B) Rework labor and overhead. 
C) Supervision of testing and inspection activities. 
D) Final product testing and inspection.

Question 17

Quality costs:

Accepted Answer

A) relate only to the manufacturing process. 
B) should be focused on appraisal activities. 
C) are minimized by having a team of well-trained quality control inspectors. 
D) cut across departmental lines and often are not accumulated and reported to management. 
A) relate only to the manufacturing process. 
B) should be focused on appraisal activities. 
C) are minimized by having a team of well-trained quality control inspectors. 
D) cut across departmental lines and often are not accumulated and reported to management.

Question 18

Which of the following would be classified as a prevention cost on a quality cost report?

Accepted Answer

A) Systems development. 
B) Disposal of defective products. 
C) Returns and allowances arising from quality problems. 
D) Supervision of testing and inspection activities. 
A) Systems development. 
B) Disposal of defective products. 
C) Returns and allowances arising from quality problems. 
D) Supervision of testing and inspection activities.

Question 19

Gadola Company's quality cost report is to be based on the following data:   Required:
Prepare a Quality Cost Report in good form with separate sections for prevention costs,appraisal costs,internal failure costs,and external failure costs.

Accepted Answer

The answer of Gadola Company's quality cost report is to...

Question 20

Which of the following would be classified as an appraisal cost on a quality cost report?

Accepted Answer

A) Liability arising from defective products. 
B) Supervision of testing and inspection activities. 
C) Technical support provided to suppliers. 
D) Debugging software errors. 
A) Liability arising from defective products. 
B) Supervision of testing and inspection activities. 
C) Technical support provided to suppliers. 
D) Debugging software errors.

Exam 16: Appendix B: Cost of Quality

Prevention costs and appraisal costs are incurred in an effort to keep poor quality of conformance from occurring.

Eacker Company's quality cost report is to be based on the following data: -What would be the total internal failure cost appearing on the quality cost report?

Eade Company's quality cost report is to be based on the following data: -What would be the total internal failure cost appearing on the quality cost report?

Godunov Company's quality cost report is to be based on the following data: Required: Prepare a Quality Cost Report in good form with separate sections for prevention costs,appraisal costs,internal failure costs,and external failure costs.

Faast Company's quality cost report is to be based on the following data: -What would be the total prevention cost appearing on the quality cost report?

Faast Company's quality cost report is to be based on the following data: -What would be the total internal failure cost appearing on the quality cost report?

Eade Company's quality cost report is to be based on the following data: -What would be the total external failure cost appearing on the quality cost report?

Internal failure costs result when a defective product is used within the company.

Eade Company's quality cost report is to be based on the following data: -What would be the total appraisal cost appearing on the quality cost report?

Which of the following would be classified as an internal failure cost on a quality cost report?

Faas Company's quality cost report is to be based on the following data: -What would be the total prevention cost appearing on the quality cost report?

Which of the following would be classified as a prevention cost on a quality cost report?

Which of the following would be classified as an external failure cost on a quality cost report?

An example of an internal failure cost is:

External failure costs result when a defective product is shipped to a customer.

Which of the following would be classified as an internal failure cost on a quality cost report?

Quality costs:

Which of the following would be classified as a prevention cost on a quality cost report?

Gadola Company's quality cost report is to be based on the following data: Required: Prepare a Quality Cost Report in good form with separate sections for prevention costs,appraisal costs,internal failure costs,and external failure costs.

Which of the following would be classified as an appraisal cost on a quality cost report?

Managerial Accounting and Cost Concepts

Job-Order Costing

Process Costing

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Activity-Based Costing: a Tool to Aid Decision Making

Profit Planning

Flexible Budgets and Performance Analysis

Standard Costs and Variances

Performance Measurement in Decentralized Organizations

Differential Analysis: The Key to Decision Making

Capital Budgeting Decisions

Statement of Cash Flows

Financial Statement Analysis

Least-Squares Regression Computations

The Predetermined Overhead Rate and Capacity

Further Classification of Labor Costs

Fifo Method

Service Department Allocations

Abc Action Analysis

Using a Modified Form of Activity-Based Costing to Determine Product Costs for External Reports

Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

Journal Entries to Record Variances

Transfer Pricing

Service Department Charges

The Concept of Present Value

Income Taxes in Capital Budgeting Decisions

The Direct Method of Determining the Net Cash Provided by Operating Activities

Pricing Products and Services

Profitability Analysis

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