Question 1

(Appendix 1A)  Eaglin 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)   $194,000
B)   $175,000
C)   $112,000
D)   $167,000E) A) and D)
F) B) and C)

Question 2

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) None of the above
F) All of the above

Question 3

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 4

Quality is achieved when a product or service contains all of the features that a customer would expect,and when that product or
service performs in such a way that the customer is satisfied.

Accepted Answer

A) True 
 B)False

Question 5

(Appendix 1A)  Eaglin 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)   $119,000
B)   $149,000
C)   $156,000
D)   $140,000E) None of the above
F) A) and C)

Question 6

(Appendix 1A)  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 B)
F) A) and C)

Question 7

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

Accepted Answer

A)   Cost of field servicing and handling complaints.
B)   Warranty repairs and replacements.
C)   Systems development.
D)   Rework labor and overhead.E) A) and C)
F) A) and B)

Question 8

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

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

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) A) and B)
F) None of the above

Question 11

(Appendix 1A)  Fackler 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)   $57,000
B)   $62,000
C)   $205,000
D)   $424,000E) A) and B)
F) C) and D)

Question 12

A quality cost report is usually compiled by the purchasing department to show the added costs of purchasing higher quality components.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A)   Returns and allowances arising from quality problems.
B)   Quality improvement projects.
C)   Quality engineering.
D)   Net cost of spoilage.E) B) and C)
F) A) and B)

Question 14

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

Accepted Answer

A)   Maintenance of test equipment.
B)   Re-entering data because of keying errors.
C)   Debugging software errors.
D)   Warranty repairs and replacements.E) C) and D)
F) B) and D)

Question 15

(Appendix 1A)  Eagleson 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)   $155,000
B)   $150,000
C)   $96,000
D)   $107,000E) A) and D)
F) B) and D)

Question 16

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 B and C above.
E)   none of the above.F) A) and E)
G) B) and E)

Question 17

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) A) and C)

Question 18

External failure costs are limited to the costs of repairing defective products that are under warranty.

Accepted Answer

A) True 
 B)False

Question 19

(Appendix 1A)  Fabrick 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)   $101,000.
B)   $72,000
C)   $73,000
D)   $101,000E) A) and B)
F) None of the above

Question 20

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) All of the above
F) A) and B)

Exam 16: Cost of Quality

External failure costs are limited to the costs of repairing defective products that are under warranty.

Correct AnswerverifiedShow Answer

(Appendix 1A) Eagleson 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 appraisal cost on a quality cost report?

Correct AnswerverifiedShow Answer

(Appendix 1A) Eaglin 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

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 AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

(Appendix 1A) Fabrick 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

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

Correct AnswerverifiedShow Answer

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

(Appendix 1A) Fackler 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?

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

(Appendix 1A) 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

Quality is achieved when a product or service contains all of the features that a customer would expect,and when that product or service performs in such a way that the customer is satisfied.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

(Appendix 1A) Eaglin 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

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

Correct AnswerverifiedShow Answer

A quality cost report is usually compiled by the purchasing department to show the added costs of purchasing higher quality components.

Correct AnswerverifiedShow Answer

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