Question :
MULTIPLE CHOICE.
Choose the one alternative that best completes the statement : 1196146
MULTIPLE CHOICE.
Choose the one alternative that best completes the statement or answers the question. 21)
Quality of design measures 21)
______ A)
how closely the characteristics of products or services match the needs and wants of the Board of Directors. B)
how closely the characteristics of products or services match the needs and wants of competitors. C)
how closely the characteristics of products or services match the needs and wants of employees. D)
how closely the characteristics of products or services match the needs and wants of union representatives. E)
how closely the characteristics of products or services match the needs and wants of customers.
22)
Conformance quality is 22)
______ 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 specifications. C)
the performance of a product or service according to competitor information. D)
the performance of a product or service according to design and customer specifications. E)
the performance of a product or service according to employee specifications.
23)
Costs of quality include all of the following EXCEPT 23)
______ A)
external failure costs. B)
internal failure costs. C)
prevention costs. D)
appraisal costs. E)
correction costs.
24)
Costs incurred in detecting which of the individual units do not conform to specifications are called 24)
______ A)
prevention costs. B)
internal failure costs. C)
correction costs. D)
external failure costs. E)
appraisal costs.
25)
Which of the following are typically not included in COQ reports? 25)
______ A)
lost contribution margin from lost sales due to poor quality B)
lost contribution margin from lost sales and/or from lost production, nor lower prices that result form poor quality C)
lower prices that result from poor quality D)
allocation bases E)
lost production that results from poor quality
26)
Warranty repair costs are 26)
______ A)
appraisal costs. B)
an external failure cost. C)
a marketing cost. D)
prevention costs. E)
an internal failure cost.
27)
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? 27)
______ A)
2.20% B)
2.80% C)
1.87% D)
0.93% E)
1.25%
28)
Supplier evaluations are an example of 28)
______ A)
appraisal costs. B)
internal failure costs. C)
external failure costs. D)
design costs. E)
prevention costs.
29)
Internal failure costs include 29)
______ A)
rework. B)
liability claims C)
warranty expenses. D)
field repairs. E)
none of the above
30)
Prevention costs include all of the following EXCEPT 30)
______ A)
quality engineering. B)
supplier evaluations. C)
design engineering. D)
product testing. E)
none of the above
