101. Which of the following statements about kaizen is false?
A. Employee empowerment will allow kaizen to occur more easily.
B. It requires active participation by all of a company’s employees.
C. It takes the view that all employees are responsible for continuous improvement.
D. It consists of major changes that require large investments on the part of the company.
102. Which of the following statements regarding “quality” is true?
A. Over the past 20 years or so, the demand by customers for quality products and services at an affordable price has drastically changed the way companies do business.
B. Improving quality increases sales through higher customer satisfaction and demand, reduces costs, and increases the long-term profitability of companies.
C. Companies have focused on improving the quality of the products or the services they sell through a variety of initiatives, such as total quality management (TQM), market-driven quality, and strategic quality management.
D. All of these are true.
103. Which of the following statements regarding “quality” is false?
A. Quality is often defined as meeting or exceeding customers’ expectations.
B. Quality requires that a product be reliable and durable and that these features be provided at a competitive price.
C. Studies have found that companies that spend less on quality costs have higher operating income than those companies who spend more on quality costs.
D. Improving quality often falls under the customer perspective of the balanced scorecard.
104. Which of the following is generally not one of the classifications of quality costs?
A. Appraisal (detection) costs
B. Prevention costs
C. Internal control costs
D. External failure costs
105. Which of the following statements about prevention costs is true?
A. Prevention costs are generally incurred after problems occur.
B. Design and engineering costs are not properly considered prevention costs.
C. Generally, companies find that the incurrence of prevention costs reduces long-run product failure costs.
D. None of these are true.
106. Which types of quality costs are incurred to eliminate quality problems before they occur?
A. Appraisal (detection) costs
B. Prevention costs
C. External failure costs
D. Internal failure costs
107. Which types of quality costs are incurred in the course of inspecting, identifying, and isolating defective products and services before they reach the customer?
A. Appraisal (detection) costs
B. Prevention costs
C. External failure costs
D. Internal failure costs
108. Which types of quality costs are incurred once the product is produced and then found to be defective before being sold to customers?
A. Appraisal (detection) costs
B. Prevention costs
C. External failure costs
D. Internal failure costs
109. Which types of quality costs are incurred after a defective product is delivered to a customer?
A. Appraisal (detection) costs
B. Prevention costs
C. External failure costs
D. Internal failure costs
110. Newman Co. provides training and technical support to its suppliers in order to increase the quality of purchased raw materials. Which type of quality cost would this most likely be?
A. External failure cost
B. Prevention cost
C. Internal failure cost
D. Appraisal (detection) cost
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