Question 1

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)   Repairs and replacements beyond the warranty period.
C)   Supplies used in testing and inspection.
D)   Re-entering data because of keying errors.E) None of the above
F) B) and D)

Question 2

Rotan Corporation keeps careful track of the time required to fill orders. The times recorded for a particular order appear below:  The throughput time was:

Accepted Answer

A)   4.6 hours
B)   9.7 hours
C)   20.6 hours
D)   16 hoursE) A) and B)
F) B) and D)

Question 3

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

Accepted Answer

A)   Quality improvement projects.
B)   Supervision of testing and inspection activities.
C)   Debugging software errors.
D)   Warranty repairs and replacements.E) All of the above
F) A) and B)

Question 4

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 C)
F) None of the above

Question 5

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) A) and B)
F) B) and C)

Question 6

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

Question 7

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

Question 8

Market share percentage is an example of which performance measure category?

Accepted Answer

A)   internal business processes.
B)   customer.
C)   financial.
D)   learning and growth.E) B) and C)
F) A) and D)

Question 9

Which of the following will increase a company's manufacturing cycle efficiency (MCE) ?

Accepted Answer

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

Question 10

Halpert Corporation has been in operation for one year. The only product they produce is a specific bicycle chain. They want to make sure they are effectively utilizing the machinery they use to create this product. Below is the information concerning the machine that produces the bicycle chain:  Halpert's quality rate was:

Accepted Answer

A)   0.42
B)   0.75
C)   0.80
D)   0.85E) A) and B)
F) B) and C)

Question 11

The corporate social responsibility measure of "Pounds of waste produced" is an example of which performance measure category?

Accepted Answer

A)   internal business processes.
B)   customer.
C)   financial.
D)   learning and growth.E) A) and B)
F) A) and D)

Question 12

Customer value propositions typically fall into three broad categories, which include all of the following except:

Accepted Answer

A)   market share.
B)   product leadership.
C)   operational excellence.
D)   customer intimacy.E) C) and D)
F) A) and B)

Question 13

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

Accepted Answer

A)   Quality improvement projects.
B)   Supplies used in testing and inspection.
C)   Audits of the effectiveness of the quality system.
D)   Quality data gathering, analysis, and reporting.E) C) and D)
F) A) and B)

Question 14

Santoyo Corporation keeps careful track of the time required to fill orders. Data concerning a particular order appear below:  The delivery cycle time was:

Accepted Answer

A)   10.1 hours
B)   23.6 hours
C)   26.4 hours
D)   3.2 hoursE) A) and B)
F) A) and C)

Question 15

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

Accepted Answer

A)   Debugging software errors.
B)   Quality training.
C)   Test and inspection of incoming materials.
D)   Cost of field servicing and handling complaints.E) A) and B)
F) All of the above

Question 16

Fackler 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)   $130,000
B)   $152,000
C)   $146,000
D)   $219,000E) A) and D)
F) C) and D)

Question 17

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) C) and D)
F) A) and B)

Question 18

The Global Reporting Initiative (GRI)  is a leading organization in the field of social and environmental performance measurement. Their widely adopted sustainability reporting framework includes three universal standards and three sets of topic-specific standards. These universal standards include all the following except:

Accepted Answer

A)   Performance incentive structure.
B)   Stakeholder engagement.
C)   Governance.
D)   Strategy and analysis disclosure.E) B) and C)
F) All of the above

Question 19

Schurz Corporation's management reports that its average delivery cycle time is 27 days, its average throughput time is 10.0 days, its manufacturing cycle efficiency (MCE) is 0.32, its average move time is 0.3 day, and its average queue time is 6.0 days.Required:a. What is the wait time? (Round your answer to 1 decimal place.)b. What is the process time? (Round your answer to 1 decimal place.)c. What is the inspection time? (Round your intermediate calculations and final answer to 1 decimal place.)

Accepted Answer

a. Delivery cycle time = Wait time + Thr...

Question 20

When tying compensation to the balanced scorecard, management must ensure that the performance measures have all the following characteristics except:

Accepted Answer

A)   Reliable.
B)   Sensible.
C)   Understood by those who are being evaluated.
D)   Easily manipulated.E) C) and D)
F) A) and D)

Exam 12: Strategic Performance Measurement

Customer value propositions typically fall into three broad categories, which include all of the following except:

Correct Answer
verified

Gadsen 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 Answer
verified

Correct Answer
verified

When tying compensation to the balanced scorecard, management must ensure that the performance measures have all the following characteristics except:

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Fackler 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?

Correct Answer
verified

Santoyo Corporation keeps careful track of the time required to fill orders. Data concerning a particular order appear below: The delivery cycle time was:

Correct Answer
verified

Which of the following will increase a company's manufacturing cycle efficiency (MCE) ?

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Galaviz 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 Answer
verified

Rotan Corporation keeps careful track of the time required to fill orders. The times recorded for a particular order appear below: The throughput time was:

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified
a. Delivery cycle time = Wait time + Thr...
View Answer

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

Correct Answer
verified

Correct Answer
verified

The corporate social responsibility measure of "Pounds of waste produced" is an example of which performance measure category?

Correct Answer
verified

Market share percentage is an example of which performance measure category?

Correct Answer
verified

Exam 12: Strategic Performance Measurement

Customer value propositions typically fall into three broad categories, which include all of the following except:

Correct AnswerverifiedShow Answer

Gadsen 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

Correct AnswerverifiedShow Answer

When tying compensation to the balanced scorecard, management must ensure that the performance measures have all the following characteristics except:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Santoyo Corporation keeps careful track of the time required to fill orders. Data concerning a particular order appear below: The delivery cycle time was:

Correct AnswerverifiedShow Answer

Which of the following will increase a company's manufacturing cycle efficiency (MCE) ?

Correct AnswerverifiedShow Answer

Which of the following would be classified as a prevention 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

Galaviz 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

Rotan Corporation keeps careful track of the time required to fill orders. The times recorded for a particular order appear below: The throughput time was:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct Answerverifieda. Delivery cycle time = Wait time + Thr...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The corporate social responsibility measure of "Pounds of waste produced" is an example of which performance measure category?

Correct AnswerverifiedShow Answer

Market share percentage is an example of which performance measure category?

Correct AnswerverifiedShow Answer

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a. Delivery cycle time = Wait time + Thr...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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