Question 1

In classifying the costs of quality at a company that manufactures sonar equipment, which of the following is considered an external failure cost?

Accepted Answer

A)   the net cost of scrap and spoilage incurred during production.
B)   the cost of repairs and replacements made during the warranty period.
C)   the cost of debugging software errors found in the sonar equipment during inspection at the plant.
D)   both the cost of repairs and replacements made during the warranty period and the cost of debugging software errors found in the sonar equipment during inspection at the plant.
E)   none of the above.F) B) and E)
G) B) and D)

Question 2

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

Accepted Answer

A)   Rework labor and overhead.
B)   Technical support provided to suppliers.
C)   Quality improvement projects.
D)   Systems development.E) C) and D)
F) A) and B)

Question 3

Inspection of products would be classified as a(n) :

Accepted Answer

A)   prevention cost.
B)   appraisal cost.
C)   internal failure cost.
D)   external failure cost.E) A) and B)
F) None of the above

Question 4

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

Accepted Answer

A)   Test and inspection of in-process goods.
B)   Technical support provided to suppliers.
C)   Debugging software errors.
D)   Audits of the effectiveness of the quality system.E) C) and D)
F) A) and B) A

Question 5

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

Accepted Answer

A)   Final product testing and inspection.
B)   Disposal of defective products.
C)   Supervision of testing and inspection activities.
D)   Cost of field servicing and handling complaints.E) None of the above
F) A) and C) D

Question 6

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

Accepted Answer

A)   Final product testing and inspection.
B)   Warranty repairs and replacements.
C)   Depreciation of test equipment.
D)   Debugging software errors.E) B) and D)
F) B) and C)

Question 7

An increase in appraisal costs in a quality improvement program would usually have the following initial effects on internal and external failure costs:

Accepted Answer

A)   Choice A
B)   Choice B
C)   Choice C
D)   Choice DE) All of the above
F) A) and C)

Question 8

Fackler 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)   $143,000
B)   $146,000
C)   $97,000
D)   $43,000E) B) and C)
F) A) and D)

Question 9

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

Accepted Answer

A)   Reentering data because of keying errors.
B)   Customer returns arising from quality problems.
C)   Test and inspection of in-process goods.
D)   Rework labor and overhead.E) None of the above
F) B) and C)

Question 10

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

Accepted Answer

A)   Re-entering data because of keying errors.
B)   Repairs and replacements beyond the warranty period.
C)   Disposal of defective products.
D)   Technical support provided to suppliers.E) All of the above
F) A) and B)

Question 11

The costs of lost sales arising from poor quality are always included in quality cost reports.

Accepted Answer

A) True 
 B)False

Question 12

Eagleson 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)   $107,000
B)   $125,000
C)   $84,000
D)   $89,000E) B) and D)
F) A) and B)

Question 13

The cost of testing incoming materials received from suppliers would be classified as a(n) :

Accepted Answer

A)   prevention cost.
B)   appraisal cost.
C)   internal failure cost.
D)   external failure cost.E) B) and C)
F) All of the above

Question 14

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

Accepted Answer

A)   Final product testing and inspection.
B)   Net cost of spoilage.
C)   Repairs and replacements beyond the warranty period.
D)   Rework labor and overhead.E) A) and D)
F) B) and C)

Question 15

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

Accepted Answer

A)   Rework labor and overhead.
B)   Cost of field servicing and handling complaints.
C)   Technical support provided to suppliers.
D)   Lost sales arising from a reputation for poor quality.E) All of the above
F) A) and B)

Question 16

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

Accepted Answer

A)   Depreciation of test equipment.
B)   Test and inspection of in-process goods.
C)   Test and inspection of incoming materials.
D)   Warranty repairs and replacements.E) A) and B)
F) None of the above

Question 17

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

Accepted Answer

A)   Net cost of spoilage.
B)   Supervision of testing and inspection activities.
C)   Liability arising from defective products.
D)   Technical support provided to suppliers.E) A) and D)
F) A) and B) D

Question 18

ISO 9000 standards were established to make sure that all consumer products incorporate specific safety features.

Accepted Answer

A) True 
 B)False

Question 19

Hartnett 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 Hartnett Company's quality cost report is to...

Question 20

The cost of quality training would be classified as a(n) :

Accepted Answer

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

Exam 12: Cost of Quality

In classifying the costs of quality at a company that manufactures sonar equipment, which of the following is considered an external failure cost?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Inspection of products would be classified as a(n) :

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedA

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

Correct AnswerverifiedD

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

Correct AnswerverifiedShow Answer

An increase in appraisal costs in a quality improvement program would usually have the following initial effects on internal and external failure costs:

Correct AnswerverifiedShow Answer

Fackler 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?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The costs of lost sales arising from poor quality are always included in quality cost reports.

Correct AnswerverifiedShow Answer

Eagleson 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?

Correct AnswerverifiedShow Answer

The cost of testing incoming materials received from suppliers would be classified as a(n) :

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedD

ISO 9000 standards were established to make sure that all consumer products incorporate specific safety features.

Correct AnswerverifiedShow Answer

Hartnett 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.

Correct AnswerverifiedShow Answer

The cost of quality training would be classified as a(n) :

Correct AnswerverifiedShow Answer

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D

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D

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