21. Which of the following statements about kaizen is false?
A. Employee empowerment will allow kaizen to occur more easily.
B. It requires active participation by all of a company’s employees.
C. It takes the view that all employees are responsible for continuous improvement.
D. It consists of major changes that require large investments on the part of the company.
22. Which of the following statements is false regarding ISO 9000?
A. It was originally developed by the International Standards Organization.
B. It is a set of guidelines for quality management.
C. Companies in the United States are discouraged from using ISO 9000.
D. Many companies in Europe seek ISO 9000 certification.
23. Which of the following statements regarding “quality” is false?
A. Quality is often defined as meeting or exceeding customers’ expectations.
B. Quality requires that a product be reliable and durable and that these features be provided at a competitive price.
C. Studies have found that companies that spend less on quality costs have higher operating income than those companies who spend more on quality costs.
D. Improving quality often falls under the customer perspective of the balanced scorecard.
24. Which of the following is generally not one of the classifications of quality costs?
A. Appraisal (detection) costs
B. Prevention costs
C. Internal control costs
D. External failure costs
25. Which types of quality costs are incurred to eliminate quality problems before they occur?
A. Appraisal (detection) costs
B. Prevention costs
C. External failure costs
D. Internal failure costs
26. Which types of quality costs are incurred in the course of inspecting, identifying, and isolating defective products and services before they reach the customer?
A. Appraisal (detection) costs
B. Prevention costs
C. External failure costs
D. Internal failure costs
27. Which types of quality costs are incurred once the product is produced and then found to be defective before being sold to customers?
A. Appraisal (detection) costs
B. Prevention costs
C. External failure costs
D. Internal failure costs
28. Which types of quality costs are incurred after a defective product is delivered to a customer?
A. Appraisal (detection) costs
B. Prevention costs
C. External failure costs
D. Internal failure costs
29. Newman Co. provides training and technical support to its suppliers in order to increase the quality of purchased raw materials. Which type of quality cost would this most likely be?
A. External failure cost
B. Prevention cost
C. Internal failure cost
D. Appraisal (detection) cost
30. Barksdale Manufacturing Inc. produces its products in batches containing 100 units. Barksdale randomly samples 15 of the units in each batch for quality control. The costs of performing these random sample tests would most likely be which type of quality cost?
A. External failure cost
B. Prevention cost
C. Internal failure cost
D. Appraisal (detection) cost
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