Question 1

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

Accepted Answer

A)  Re-entering data because of keying errors.
B)  Quality data gathering, analysis, and reporting.
C)  Debugging software errors.
D)  Test and inspection of in-process goods.E) B) and C)
F) A) and D)

Question 2

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

Question 3

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)  Re-entering data because of keying errors.
C)  Rework labor and overhead.
D)  Liability arising from defective products.E) C) and D)
F) None of the above

Question 4

What would be the total internal failure cost appearing on the quality cost report?

Accepted Answer

A)  $161,000
B)  $129,000
C)  $139,000
D)  $170,000E) B) and D)
F) B) and C)

Question 5

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

Accepted Answer

A)  Re-entering data because of keying errors.
B)  Final product testing and inspection.
C)  Supplies used in testing and inspection.
D)  Depreciation of test equipment.E) None of the above
F) All of the above

Question 6

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

Accepted Answer

A)  Quality improvement projects.
B)  Disposal of defective products.
C)  Depreciation of test equipment.
D)  Final product testing and inspection.E) B) and C)
F) B) and D)

Question 7

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

Accepted Answer

A)  Warranty repairs and replacements.
B)  Supplies used in testing and inspection.
C)  Debugging software errors.
D)  Final product testing and inspection.E) All of the above
F) C) and D)

Question 8

A product can have a high quality design but have a low quality of conformance.

Accepted Answer

A) True 
 B)False

Question 9

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

Question 10

If a company wants to decrease its total quality cost, it would usually be best to spend more money on:

Accepted Answer

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

Question 11

What would be the total appraisal cost appearing on the quality cost report?

Accepted Answer

A)  $269,000
B)  $170,000
C)  $136,000
D)  $78,000E) B) and D)
F) A) and B)

Question 12

What would be the total internal failure cost appearing on the quality cost report?

Accepted Answer

A)  $104,000
B)  $65,000
C)  $79,000
D)  $52,000E) C) and D)
F) A) and C)

Question 13

Quality of conformance is the degree to which an actual product meets its design specifications and is free of defects or other problems that might affect appearance or performance.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A)  Quality circles.
B)  Downtime caused by quality problems.
C)  Supplies used in testing and inspection.
D)  Quality engineering.E) A) and B)
F) B) and D)

Question 15

ISO 9000 certification is relatively easy to achieve because little documentation on quality control procedures is needed.

Accepted Answer

A) True 
 B)False

Question 16

What would be the total internal failure cost appearing on the quality cost report?

Accepted Answer

A)  $124,000
B)  $113,000
C)  $121,000
D)  $64,000E) B) and C)
F) A) and D)

Question 17

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

Accepted Answer

A)  Net cost of scrap.
B)  Product recalls.
C)  Rework labor and overhead.
D)  Downtime caused by quality problems.E) All of the above
F) None of the above

Question 18

What would be the total external failure cost appearing on the quality cost report?

Accepted Answer

A)  $90,000
B)  $551,000
C)  $121,000
D)  $282,000E) A) and B)
F) B) and C)

Question 19

What would be the total prevention cost appearing on the quality cost report?

Accepted Answer

A)  $133,000
B)  $154,000
C)  $131,000
D)  $115,000E) C) and D)
F) A) and B)

Question 20

What would be the total prevention cost appearing on the quality cost report?

Accepted Answer

A)  $57,000
B)  $77,000
C)  $48,000
D)  $86,000E) A) and C)
F) None of the above

Exam 3: Cost of Quality

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 appraisal cost on a quality cost report?

Correct AnswerverifiedShow Answer

What would be the total appraisal cost appearing on the quality cost report?

Correct AnswerverifiedShow Answer

What would be the total prevention cost appearing on the quality cost report?

Correct AnswerverifiedShow Answer

What would be the total external failure cost appearing on the quality cost report?

Correct AnswerverifiedShow Answer

What would be the total internal failure cost appearing on the quality cost report?

Correct AnswerverifiedShow Answer

A product can have a high quality design but have a low quality of conformance.

Correct AnswerverifiedShow Answer

ISO 9000 certification is relatively easy to achieve because little documentation on quality control procedures is needed.

Correct AnswerverifiedShow Answer

What would be the total internal failure cost appearing on the quality cost report?

Correct AnswerverifiedShow Answer

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

If a company wants to decrease its total quality cost, it would usually be best to spend more money on:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Quality of conformance is the degree to which an actual product meets its design specifications and is free of defects or other problems that might affect appearance or performance.

Correct AnswerverifiedShow Answer

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 a prevention cost on a quality cost report?

Correct AnswerverifiedShow Answer

Harvie 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

Galati 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 an external failure cost on a quality cost report?

Correct AnswerverifiedShow Answer

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