41. Bradford Inc. manufactures and sells digital cameras. Bradford’s management team has begun an intensive program whereby more time and effort are to be focused on product quality than were focused on in the past. The following data has been compiled regarding expected quality costs in the upcoming year:
Product quality audits
$ 60,000
Quality training
50,000
Rework costs
80,000
Warranty claims
40,000
Inspection of incoming materials
25,000
Scrap costs
20,000
Statistical process control
35,000
Refer to the Bradford Inc. information above. What are Bradford’s total appraisal (detection) costs? A. $170,000B. $110,000C. $120,000D. $ 60,000
42. Bradford Inc. manufactures and sells digital cameras. Bradford’s management team has begun an intensive program whereby more time and effort are to be focused on product quality than were focused on in the past. The following data has been compiled regarding expected quality costs in the upcoming year:
Product quality audits
$ 60,000
Quality training
50,000
Rework costs
80,000
Warranty claims
40,000
Inspection of incoming materials
25,000
Scrap costs
20,000
Statistical process control
35,000
Refer to the Bradford Inc. information above. What are Bradford’s total internal failure costs? A. $160,000B. $100,000C. $125,000D. $140,000
43. Bradford Inc. manufactures and sells digital cameras. Bradford’s management team has begun an intensive program whereby more time and effort are to be focused on product quality than were focused on in the past. The following data has been compiled regarding expected quality costs in the upcoming year:
Product quality audits
$ 60,000
Quality training
50,000
Rework costs
80,000
Warranty claims
40,000
Inspection of incoming materials
25,000
Scrap costs
20,000
Statistical process control
35,000
Refer to the Bradford Inc. information above. What are Bradford’s total external failure costs? A. $ 40,000B. $ 60,000C. $140,000D. $100,000
44. Which of the following is generally not one of the classifications of environmental costs? A. Prevention costsB. Internal failure costsC. Detection costsD. Value-added costs
45. Velum Inc., a local paper plant, is considering expanding its operations. The expansion would require the release of a small amount of byproduct into the local river. Velum has decided to conduct an environmental impact study. Which type of environmental cost would the impact study be classified as? A. External failure costB. Prevention costC. Internal failure costD. Detection cost
46. Tri-Chem Inc. is a manufacturer of various chemicals used in the plastics industry. Tri-Chem is required to have its smokestacks inspected every six months for compliance. Which type of environmental cost would the smokestack inspections most likely be classified as? A. External failure costB. Prevention costC. Internal failure costD. Detection cost
47. JBH Inc. is a tire manufacturer. JBH is required to either recycle or properly dispose of all rubber scrap material. Which type of environmental cost would the recycling and disposal costs most likely be classified as? A. External failure costB. Prevention costC. Internal failure costD. Detection cost
48. Royalle Inc. transports crude oil for a well known oil producer. Last year, the company spilled approximately one million gallons of crude oil off the coast of Alaska. Royalle was held responsible for cleaning up the spill. Which type of environmental cost would the clean up costs most likely be classified as? A. External failure costB. Prevention costC. Internal failure costD. Detection cost
49. A measure of the relationship between outputs and inputs is often called: A. kaizen.B. productivity.C. value-chain.D. liquidity.
50. The time it takes to deliver a product or service after an order is placed is called the: A. cycle time.B. process time.C. customer response time.D. production time.
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