101. Schedule of Activity Costs
Quality Control Activities
Activity Cost
Process audits
$55,000
Training of machine operators
26,000
Processing returned products
18,000
Scrap processing (disposal)
29,000
Rework
8,000
Preventative maintenance
30,000
Product design
46,000
Warranty work
12,000
Finished goods inspection
22,000
From the above Schedule of Activity Costs, determine the nonvalue-added costs. A. $67,000B. $ 8,000C. $20,000D. $49,000
102. Schedule of Activity Costs
Quality Control Activities
Activity Cost
Process audits
$55,000
Training of machine operators
26,000
Processing returned products
18,000
Scrap processing (disposal)
29,000
Rework
8,000
Preventative maintenance
30,000
Product design
46,000
Warranty work
12,000
Finished goods inspection
22,000
From the above Schedule of Activity Costs, determine the value-added costs. A. $125,000B. $149,000C. $179,000D. $22,000
103. Schedule of Activity Costs
Quality Control Activities
Activity Cost
Process audits
$55,000
Training of machine operators
26,000
Processing returned products
18,000
Scrap processing (disposal)
29,000
Rework
8,000
Preventative maintenance
30,000
Product design
46,000
Warranty work
12,000
Finished goods inspection
22,000
From the above Schedule of Activity Costs, determine the internal failure costs. A. $12,000B. $29,000C. $8,000D. $37,000
104. Schedule of Activity Costs
Quality Control Activities
Activity Cost
Process audits
$55,000
Training of machine operators
26,000
Processing returned products
18,000
Scrap processing (disposal)
29,000
Rework
8,000
Preventative maintenance
30,000
Product design
46,000
Warranty work
12,000
Finished goods inspection
22,000
From the above Schedule of Activity Costs, determine the external failure costs. A. $29,000B. $18,000C. $12,000D. $30,000
105. Schedule of Activity Costs
Quality Control Activities
Activity Cost
Process audits
$55,000
Training of machine operators
26,000
Processing returned products
18,000
Scrap processing (disposal)
29,000
Rework
8,000
Preventative maintenance
30,000
Product design
46,000
Warranty work
12,000
Finished goods inspection
22,000
From the above Schedule of Activity Costs, determine the appraisal costs. A. $55,000B. $22,000C. $77,000D. $103,000
106. Schedule of Activity Costs
Quality Control Activities
Activity Cost
Process audits
$55,000
Training of machine operators
26,000
Processing returned products
18,000
Scrap processing (disposal)
29,000
Rework
8,000
Preventative maintenance
30,000
Product design
46,000
Warranty work
12,000
Finished goods inspection
22,000
From the above Schedule of Activity Costs, determine the prevention costs. A. $46,000B. $102,000C. $26,000D. $76,000
107. The local college is aggressively working in reducing the time that a student needs to enroll for each semester. All except one of the following changes is helping in their efforts. A. Counselors are specializing in common degree plans.B. One application is good at the Community college and at the transferring University.C. A one stop area includes registration, admissions, advising, and ID’s. Each working closely with each other.D. Reduce the number of degrees being offered.
108. The college would like to increase enrollment by following the just-in-time principle by streamlining the enrollment process. Which of the following would not fall in line with the college goal? A. reduce the requirements necessary to enroll.B. relocate counselors, academic advisors, and financial aid specialists for a major to a central location.C. train counselors, academic advisors, and financial aid specialists to serve like majors.D. crosstrain counselors, academic advisors, and financial aid specialists.
109. Which of the following statements is correct? A. Costs of controlling quality include prevention and appraisal costsB. Costs of failing to control quality include internal and external failure costsC. A and B are both correctD. A and B are both incorrect.
110. All of the following except one are examples of prevention costs A. preventive maintenanceB. operator trainingC. design engineeringD. testing activities
111. The following are examples of external failure costs except A. warranty workB. returned merchandiseC. reworkD. correcting invoice errors
112. Which of the following statements best describes the relationship between costs of quality? A. The more that is spent on prevention and appraisal costs, the overall costs of quality will be reducedB. The more that is spent on prevention and appraisal costs, the overall costs of quality will remain the same.C. Overtime prevention and appraisal costs will eliminate all internal and external costs.D. Internal and external costs will increase as prevention and appraisal costs increase.
113. The following are examples of nonvalue added activities except A. inspectionsB. reworkC. preventive maintenanceD. warranties
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