Question :
21) A learning curve a function that measures how labour-hours : 1186128
21) A learning curve is a function that measures how labour-hours per unit decrease, as units of production increase.
22) A COQ report provides information on individual categories, but can not provide information on interdependencies across the four categories of quality costs.
23) Quality of design measures
A) how closely the characteristics of products or services match the needs and wants of customers.
B) how closely the characteristics of products or services match the needs and wants of employees.
C) how closely the characteristics of products or services match the needs and wants of the Board of Directors.
D) how closely the characteristics of products or services match the needs and wants of competitors.
E) how closely the characteristics of products or services match the needs and wants of union representatives.
24) Conformance quality is
A) the performance of a product or service according to design and production specifications.
B) the performance of a product or service according to design and customer specifications.
C) the performance of a product or service according to competitor information.
D) the performance of a product or service according to design specifications.
E) the performance of a product or service according to employee specifications.
25) Costs of quality include all of the following EXCEPT
A) correction costs.
B) external failure costs.
C) internal failure costs.
D) prevention costs.
E) appraisal costs.
26) Costs incurred in detecting which of the individual units do not conform to specifications are called
A) correction costs.
B) external failure costs.
C) internal failure costs.
D) prevention costs.
E) appraisal costs.
27) Which of the following are typically not included in COQ reports?
A) lost contribution margin from lost sales due to poor quality
B) lost production that results from poor quality
C) lower prices that result from poor quality
D) allocation bases
E) lost contribution margin from lost sales and/or from lost production, nor lower prices that result form poor quality
28) Warranty repair costs are
A) prevention costs.
B) appraisal costs.
C) an internal failure cost.
D) a marketing cost.
E) an external failure cost.
29) Try-Us-First Motors manufactures and sells off-road vehicles. The September sales were $6,000,000. Monthly design costs are $112,000 and rework is running at $75,000 per month. Its painting department is fully automated and requires substantial inspection to keep the machines operating properly. An improperly painted vehicle is very expensive to correct, and inspection hours for the 8,000 vehicles painted in September totaled 2,000 hours by 14 employees, who earn an average of $28 an hour. Ten litres of paint were used on average for each vehicle. The standard amount of paint per vehicle is nine litres. The cost of inspection for September was equal to the budgeted amount of $56,000.
What are appraisal costs as a percentage of sales?
A) 0.93%
B) 1.25%
C) 1.87%
D) 2.20%
E) 2.80%
30) Supplier evaluations are an example of
A) appraisal costs.
B) prevention costs.
C) internal failure costs.
D) design costs.
E) external failure costs.
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