Question :
111. Barksdale Manufacturing Inc. produces its products in batches containing 100 : 1291614
111. 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 costB. Prevention costC. Internal failure costD. Appraisal (detection) cost
112. CLR Inc. is a clothing manufacturer. Recently, CLR made and produced about 2,000 shirts. During the production process, some of the shirts did not have the required number of buttons sewed on. CLR has decided to rework the shirts to add the buttons. These rework costs would most likely be classified as which type of quality cost? A. Internal failure costsB. Appraisal (detection) costsC. Prevention costsD. External failure costs
113. FMI is a car manufacturer. Recently, they have had to recall approximately 6,000 cars due to potential brake pad malfunction. The costs to inspect and replace the brake pads would most likely be classified as which type of quality cost? A. Appraisal (detection) costsB. External failure costsC. Internal failure costsD. Prevention costs
114. Which of the following statements about quality costs is true? A. Both external and internal failure costs can be reduced (theoretically to zero) by paying more attention to quality issues early in the value chain.B. Increasing expenditures related to prevention and appraisal can result in significant overall cost savings in the long run.C. It may be prudent to increase expenditures in one or more areas in order to decrease other costs.D. All of these are true.
115. Which of the following statements about quality costs is true? A. Even in theory, external failure costs can never be reduced to zero.B. The less a company spends on prevention costs, the less they will have to spend on internal failure costs in the future.C. If a company produces and sells a defective product, external failure costs are likely to exceed all the other types of quality costs.D. A low level of internal failure costs usually indicates that more attention needs to be paid to prevention and appraisal costs.
116. Which of the following statements about quality costs is true? A. A low level of internal failure costs usually indicates that more attention needs to be paid to prevention and appraisal costs.B. A low level of external failure costs usually indicates that more attention needs to be paid to appraisal and internal failure costs.C. A high level of internal failure costs usually indicates that more attention needs to be paid to prevention and appraisal costs.D. A high level of appraisal costs usually indicates that more attention needs to be paid to external failure costs.
117. External failure costs include: A. lost sales.B. costs associated with product repairs made under warranty.C. product recall costs.D. all of these
118. If a company consistently produces and sells defective products, which type of quality cost is likely to be the most costly in the long-run? A. Appraisal (detection) costsB. External failure costsC. Internal failure costsD. Prevention costs
119. Bradford Inc.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
$90,000
Quality training
60,000
Rework costs
40,000
Warranty claims
70,000
Inspection of incoming materials
30,000
Scrap costs
24,000
Statistical process control
30,000
Refer to the Bradford Inc. information above. What are Bradford’s total prevention costs? A. $60,000B. $170,000C. $75,000D. $110,000
120. Bradford Inc.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
$90,000
Quality training
60,000
Rework costs
40,000
Warranty claims
70,000
Inspection of incoming materials
30,000
Scrap costs
24,000
Statistical process control
30,000
Refer to the Bradford Inc. information above. What are Bradford’s total appraisal (detection) costs? A. $170,000B. $110,000C. $150,000D. $64,000
