Question 1

Which of the following is a monetary incentive?

Accepted Answer

A)  award to recognize an employee for their efforts 
B)  error cause identification program 
C)  public recognition for outstanding achievement 
D)  gainsharing 
A)  award to recognize an employee for their efforts 
B)  error cause identification program 
C)  public recognition for outstanding achievement 
D)  gainsharing

Question 2

Environmental costs caused internally but paid by outside parties are called costs.

Accepted Answer

unrealized

Question 3

Figure 14-4
At the beginning of the year, Marinov 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, prevention costs are what percentage of sales?

Accepted Answer

A)  1.50% 
B)  0.65% 
C)  0.15% 
D)  0.05% 
A)  1.50% 
B)  0.65% 
C)  0.15% 
D)  0.05%

Question 4

Internal failure costs incurred by failure of products to conform to specifications are discovered after sales take place.

Accepted Answer

A) True 
 B)False

Question 5

In a quality cost report, quality costs are expressed as a percentage of total defective units.

Accepted Answer

A) True 
 B)False

Question 6

The assignment of costs to environmental activities yields activity rates which are then used to assign costs to products.

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, prevention costs are what percentage of sales?

Accepted Answer

A)  1.50% 
B)  0.65% 
C)  0.15% 
D)  0.05% 
A)  1.50% 
B)  0.65% 
C)  0.15% 
D)  0.05%

Question 8

Costs incurred to determine whether products and services are conforming to requirements are called

Accepted Answer

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

Question 9

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 10

Figure 14-8
Carbondioxide 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 pollution control cost per unit of Product A2?

Accepted Answer

A)  $0.1120 
B)  $0.0280 
C)  $0.0112 
D)  $0.0448 
A)  $0.1120 
B)  $0.0280 
C)  $0.0112 
D)  $0.0448

Question 11

An environmental financial statement would NOT contain information on

Accepted Answer

A)  income sources. 
B)  prevention costs. 
C)  cost of goods sold. 
D)  current savings. 
A)  income sources. 
B)  prevention costs. 
C)  cost of goods sold. 
D)  current savings.

Question 12

A multiple-period quality trend report is a chart or graph that tracks changes in quality.

Accepted Answer

A) True 
 B)False

Question 13

A quality report that compares current actual quality costs with budgeted quality costs for the future is the

Accepted Answer

A)  interim quality performance report. 
B)  one-year quality performance report. 
C)  multiple-period quality trend report. 
D)  long-range quality performance report. 
A)  interim quality performance report. 
B)  one-year quality performance report. 
C)  multiple-period quality trend report. 
D)  long-range quality performance report.

Question 14

The costs of a consumer complaint department are

Accepted Answer

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

Question 15

Figure 14-7
At the beginning of the year, Molybdenum 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:
  
-Refer to Figure 14-7. For the current year, external failure costs are what percentage of operating costs?

Accepted Answer

A)  1.5350% 
B)  1.1875% 
C)  1.0000% 
D)  0.8350% 
A)  1.5350% 
B)  1.1875% 
C)  1.0000% 
D)  0.8350%

Question 16

Which of the following is NOT an example of a quality performance report?

Accepted Answer

A)  quality design report 
B)  interim standard report 
C)  multiple-period trend report 
D)  long-range report 
A)  quality design report 
B)  interim standard report 
C)  multiple-period trend report 
D)  long-range report

Question 17

Which of the following statements is true about ISO 9000?

Accepted Answer

A)  ISO 9000 is a standard of quality measurement. 
B)  ISO 9000 has not been adopted in Europe. 
C)  ISO 9000 certifies the quality of the product. 
D)  ISO 9000 certifies the firm's commitment to continuous improvement. 
A)  ISO 9000 is a standard of quality measurement. 
B)  ISO 9000 has not been adopted in Europe. 
C)  ISO 9000 certifies the quality of the product. 
D)  ISO 9000 certifies the firm's commitment to continuous improvement.

Question 18

Quality training programs are classified as

Accepted Answer

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

Question 19

Product inspection 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 20

Developing environmental performance measures is considered a(n)

Accepted Answer

A)  prevention activity. 
B)  detection activity. 
C)  internal failure activity. 
D)  external failure activity. 
A)  prevention activity. 
B)  detection activity. 
C)  internal failure activity. 
D)  external failure activity.

Which of the following is a monetary incentive?

Environmental costs caused internally but paid by outside parties are called costs.

Internal failure costs incurred by failure of products to conform to specifications are discovered after sales take place.

In a quality cost report, quality costs are expressed as a percentage of total defective units.

The assignment of costs to environmental activities yields activity rates which are then used to assign costs to products.

Costs incurred to determine whether products and services are conforming to requirements are called

In quality analysis, robustness means the products

An environmental financial statement would NOT contain information on

A multiple-period quality trend report is a chart or graph that tracks changes in quality.

A quality report that compares current actual quality costs with budgeted quality costs for the future is the

The costs of a consumer complaint department are

Which of the following is NOT an example of a quality performance report?

Which of the following statements is true about ISO 9000?

Quality training programs are classified as

Product inspection is a(n)

Developing environmental performance measures is considered a(n)

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

Which of the following is a monetary incentive?

Environmental costs caused internally but paid by outside parties are called costs.

Internal failure costs incurred by failure of products to conform to specifications are discovered after sales take place.

In a quality cost report, quality costs are expressed as a percentage of total defective units.

The assignment of costs to environmental activities yields activity rates which are then used to assign costs to products.

Costs incurred to determine whether products and services are conforming to requirements are called

In quality analysis, robustness means the products

An environmental financial statement would NOT contain information on

A multiple-period quality trend report is a chart or graph that tracks changes in quality.

A quality report that compares current actual quality costs with budgeted quality costs for the future is the

The costs of a consumer complaint department are

Which of the following is NOT an example of a quality performance report?

Which of the following statements is true about ISO 9000?

Quality training programs are classified as

Product inspection is a(n)

Developing environmental performance measures is considered a(n)

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