Question 1

Downtime attributed to quality problems is a(n)

Accepted Answer

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

Question 2

Full environmental costing is the assignment of only private costs to individual products.

Accepted Answer

A) True 
 B)False

Question 3

The measure of how well a product meets its requirements or specifications is called:

Accepted Answer

A)  Service quality 
B)  Quality of design 
C)  Quality of conformance 
D)  Taguchi quality loss function 
A)  Service quality 
B)  Quality of design 
C)  Quality of conformance 
D)  Taguchi quality loss function

Question 4

The following information pertains to Stanislaus Corporation for 2016: Designing processes for environment $ 250,000
Testing for contamination $ 200,000
Cleaning up soil after contamination $ 1,500,000
Operating pollution control equipment $ 400,000
Measuring contamination levels $ 250,000
Total Operating Costs $15,000,000
Environmental External Failure costs amount to what percentage of total operating costs?

Accepted Answer

A)  10% 
B)  30% 
C)  17.33% 
D)  none of the above 
A)  10% 
B)  30% 
C)  17.33% 
D)  none of the above

Question 5

At the beginning of the year, Lombardi 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)  2.67% 
B)  1.83% 
C)  1.38% 
D)  0.93% 
A)  2.67% 
B)  1.83% 
C)  1.38% 
D)  0.93%

Question 6

A quality product or service is one that meets or exceeds customer expectations.

Accepted Answer

A) True 
 B)False

Question 7

Figure 14-3
At the beginning of the year, Kowalski 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. For the current year, appraisal costs are what percentage of sales?

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 8

A multi-year trend graph showing direction and magnitude of change since the implementation of a total quality program is called the report.

Accepted Answer

multiple-p

Question 9

What is a reason interim quality standards goals are utilized?

Accepted Answer

A)  For many companies, materials and services purchased are from outside parties and those suppliers need to be involved in the quality program. 
B)  Internal employees of the company need to develop confidence of a zero-defect program. 
C)  Interim standards allow management to see progress towards the long-term goal. 
D)  all of the above 
A)  For many companies, materials and services purchased are from outside parties and those suppliers need to be involved in the quality program. 
B)  Internal employees of the company need to develop confidence of a zero-defect program. 
C)  Interim standards allow management to see progress towards the long-term goal. 
D)  all of the above

Question 10

According to the robust quality view,

Accepted Answer

A)  control costs increase without limits. 
B)  control costs increase as the robust state approaches. 
C)  failure costs can be driven to zero. 
D)  all of the above. 
A)  control costs increase without limits. 
B)  control costs increase as the robust state approaches. 
C)  failure costs can be driven to zero. 
D)  all of the above.

Question 11

At the beginning of the year, Nevermore, Inc., 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: 
a. Compute each category of quality costs as a percentage of sales for each year.
Prevention costs Appraisal costs Internal failure costs External failure costs
b. How much has profit increased as a result of quality improvements?
c. If quality costs can be reduced to 2.0 percent of sales, how much additional profit would result?

Accepted Answer

The answer of At the beginning of the year, Nevermore,...

Question 12

The environmental financial statement compares benefits produced with environmental costs within a period.

Accepted Answer

A) True 
 B)False

Question 13

In a quality cost report, quality costs are grouped into categories and then each category of quality costs is expressed as a percentage of

Accepted Answer

A)  total quality costs. 
B)  total costs. 
C)  total sales. 
D)  total defective units. 
A)  total quality costs. 
B)  total costs. 
C)  total sales. 
D)  total defective units.

Question 14

Even under a zero-defects approach to quality, what types of quality costs will still remain?

Accepted Answer

A)  Internal detection costs 
B)  Internal detection and appraisal costs 
C)  Prevention and appraisal costs 
D)  Prevention and internal detection costs 
A)  Internal detection costs 
B)  Internal detection and appraisal costs 
C)  Prevention and appraisal costs 
D)  Prevention and internal detection costs

Question 15

Figure 14-9
As part of its environmental cost reporting system, Lamborghini Company tracks its total environmental costs. Consider the cost and sales data given:
  
-Refer to Figure 14-9. What is the environmental costs as a percentage of sales for 2017?

Accepted Answer

A)  100% 
B)  10% 
C)  80% 
D)  1,000% 
A)  100% 
B)  10% 
C)  80% 
D)  1,000%

Question 16

As quality improves, savings can potentially be realized by

Accepted Answer

A)  elimination of prevention costs. 
B)  elimination of appraisal costs. 
C)  reduced labor costs as a result of less rework and warranty costs. 
D)  none of the above. 
A)  elimination of prevention costs. 
B)  elimination of appraisal costs. 
C)  reduced labor costs as a result of less rework and warranty costs. 
D)  none of the above.

Question 17

Costs incurred and paid for by the firm are called:

Accepted Answer

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

Question 18

Maroone 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 2016 to 2017?

Accepted Answer

A)  $58,000 
B)  $66,000 
C)  $902,000 
D)  $960,000 
A)  $58,000 
B)  $66,000 
C)  $902,000 
D)  $960,000

Question 19

Cost information is important to managers, to help them improve managerial planning, control, and decision making.

Accepted Answer

A) True 
 B)False

Downtime attributed to quality problems is a(n)

Full environmental costing is the assignment of only private costs to individual products.

The measure of how well a product meets its requirements or specifications is called:

A quality product or service is one that meets or exceeds customer expectations.

A multi-year trend graph showing direction and magnitude of change since the implementation of a total quality program is called the report.

What is a reason interim quality standards goals are utilized?

According to the robust quality view,

The environmental financial statement compares benefits produced with environmental costs within a period.

In a quality cost report, quality costs are grouped into categories and then each category of quality costs is expressed as a percentage of

Even under a zero-defects approach to quality, what types of quality costs will still remain?

Figure 14-9 As part of its environmental cost reporting system, Lamborghini Company tracks its total environmental costs. Consider the cost and sales data given: -Refer to Figure 14-9. What is the environmental costs as a percentage of sales for 2017?

As quality improves, savings can potentially be realized by

Costs incurred and paid for by the firm are called:

Cost information is important to managers, to help them improve managerial planning, control, and decision making.

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

Downtime attributed to quality problems is a(n)

Full environmental costing is the assignment of only private costs to individual products.

The measure of how well a product meets its requirements or specifications is called:

A quality product or service is one that meets or exceeds customer expectations.

A multi-year trend graph showing direction and magnitude of change since the implementation of a total quality program is called the report.

What is a reason interim quality standards goals are utilized?

According to the robust quality view,

The environmental financial statement compares benefits produced with environmental costs within a period.

In a quality cost report, quality costs are grouped into categories and then each category of quality costs is expressed as a percentage of

Even under a zero-defects approach to quality, what types of quality costs will still remain?

Figure 14-9 As part of its environmental cost reporting system, Lamborghini Company tracks its total environmental costs. Consider the cost and sales data given: -Refer to Figure 14-9. What is the environmental costs as a percentage of sales for 2017?

As quality improves, savings can potentially be realized by

Costs incurred and paid for by the firm are called:

Cost information is important to managers, to help them improve managerial planning, control, and decision making.

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