Question 1

Earll 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)   $92,000
B)   $102,000
C)   $184,000
D)   $104,000E) A) and B)
F) All of the above

Question 2

Earll 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)   $153,000
B)   $26,000
C)   $413,000
D)   $69,000E) B) and C)
F) A) and D)

Question 3

Earll Company's quality cost report is to be based on the following data:

-A quality cost incurred to detect individual units that do not conform to specifications is an example of a(n) :

Accepted Answer

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

Question 4

Earll 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)   $127,000
B)   $26,000
C)   $84,000
D)   $150,000E) A) and D)
F) C) and D)

Question 5

Fagin 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)   $216,000
B)   $78,000
C)   $150,000
D)   $97,000E) A) and D)
F) B) and C)

Question 6

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

Accepted Answer

A)   Supplies used in testing and inspection.
B)   Test and inspection of incoming materials.
C)   Plant utilities in the inspection area.
D)   Downtime caused by quality problems.E) A) and B)
F) A) and C)

Question 7

Earll 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)   $145,000
B)   $75,000
C)   $93,000
D)   $76,000E) A) and B)
F) C) and D) D

Question 8

The cost of disposing of defective units 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) B) and D) C

Question 9

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

Accepted Answer

A)   Quality training.
B)   Liability arising from defective products.
C)   Test and inspection of incoming materials.
D)   Quality engineering.E) C) and D)
F) B) and C) B

Question 10

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

Question 11

An increase in appraisal costs will usually result in an increase in:

Accepted Answer

A)   prevention costs.
B)   internal failure costs.
C)   external failure costs.
D)   opportunity costs.E) C) and D)
F) B) and C)

Question 12

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

Accepted Answer

A)   Systems development.
B)   Plant utilities in the inspection area.
C)   Lost sales arising from a reputation for poor quality.
D)   Audits of the effectiveness of the quality system.E) A) and D)
F) C) and D)

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

Fagin 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)   $150,000
B)   $155,000
C)   $178,000
D)   $49,000E) C) and D)
F) B) and D)

Question 15

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

Accepted Answer

A)   Debugging software errors.
B)   Final product testing and inspection.
C)   Depreciation of test equipment.
D)   Liability arising from defective products.E) B) and C)
F) B) and D)

Question 16

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

Question 17

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)   Quality engineering.
C)   Lost sales arising from a reputation for poor quality.
D)   Supervision of testing and inspection activities.E) None of the above
F) A) and B)

Question 18

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

Accepted Answer

A)   Warranty repairs and replacements.
B)   Quality engineering.
C)   Test and inspection of in-process goods.
D)   Net cost of scrap.E) A) and C)
F) None of the above

Question 19

Fagin 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)   $119,000
B)   $84,000
C)   $96,000
D)   $120,000E) All of the above
F) B) and D)

Question 20

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

Exam 20: Cost of Quality

Earll 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

Earll 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

Earll Company's quality cost report is to be based on the following data: -A quality cost incurred to detect individual units that do not conform to specifications is an example of a(n) :

Correct AnswerverifiedShow Answer

Earll 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

Fagin 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 internal failure cost on a quality cost report?

Correct AnswerverifiedShow Answer

Earll 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 AnswerverifiedD

The cost of disposing of defective units would be classified as a(n) :

Correct AnswerverifiedC

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

Correct AnswerverifiedB

Harville 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

An increase in appraisal costs will usually result in an increase in:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Fagin 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

Gabris 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

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 a prevention cost on a quality cost report?

Correct AnswerverifiedShow Answer

Fagin 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

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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