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Which of the following would be classified as an appraisal cost on a quality cost report?


A) Returns and allowances arising from quality problems.
B) Downtime caused by quality problems.
C) Test and inspection of in-process goods.
D) Cost of field servicing and handling complaints.

E) C) and D)
F) None of the above

Correct Answer

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Eagleson Company's quality cost report is to be based on the following data: Eagleson Company's quality cost report is to be based on the following data:   What would be the total external failure cost appearing on the quality cost report? A)  $262,000 B)  $155,000 C)  $112,000 D)  $451,000 What would be the total external failure cost appearing on the quality cost report?


A) $262,000
B) $155,000
C) $112,000
D) $451,000

E) A) and D)
F) C) and D)

Correct Answer

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Circle K Toys, Incorporated manufactures toys and children's clothing and sells these products to retail outlets. The following costs were incurred in performing quality activities at Circle K during the year: Circle K Toys, Incorporated manufactures toys and children's clothing and sells these products to retail outlets. The following costs were incurred in performing quality activities at Circle K during the year:   What is the total of the internal failure costs for Circle K? A)  $53,000 B)  $99,000 C)  $517,000 D)  $38,000 What is the total of the internal failure costs for Circle K?


A) $53,000
B) $99,000
C) $517,000
D) $38,000

E) A) and B)
F) None of the above

Correct Answer

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Eaglin Company's quality cost report is to be based on the following data: Eaglin Company's quality cost report is to be based on the following data:   What would be the total internal failure cost appearing on the quality cost report? A)  $119,000 B)  $149,000 C)  $156,000 D)  $140,000 What would be the total internal failure cost appearing on the quality cost report?


A) $119,000
B) $149,000
C) $156,000
D) $140,000

E) None of the above
F) A) and D)

Correct Answer

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Financial measures tend to be lag indicators that report on the results of past actions.

A) True
B) False

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Which of the following would be classified as an appraisal cost on a quality cost report?


A) Test and inspection of in-process goods.
B) Technical support provided to suppliers.
C) Debugging software errors.
D) Audits of the effectiveness of the quality system.

E) C) and D)
F) All of the above

Correct Answer

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Net profit margin percentage is an example of which performance measure category?


A) internal business processes.
B) customer.
C) financial.
D) learning and growth.

E) All of the above
F) A) and D)

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Quality of conformance refers to the extent to which a product offered by one company is similar to products offered by other companies.

A) True
B) False

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Fackler Company's quality cost report is to be based on the following data: Fackler Company's quality cost report is to be based on the following data:   What would be the total external failure cost appearing on the quality cost report? A)  $57,000 B)  $62,000 C)  $205,000 D)  $424,000 What would be the total external failure cost appearing on the quality cost report?


A) $57,000
B) $62,000
C) $205,000
D) $424,000

E) All of the above
F) A) and B)

Correct Answer

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Fabrick Company's quality cost report is to be based on the following data: Fabrick Company's quality cost report is to be based on the following data:   What would be the total external failure cost appearing on the quality cost report? A)  $50,500 B)  $370,900 C)  $78,400 D)  $206,400 What would be the total external failure cost appearing on the quality cost report?


A) $50,500
B) $370,900
C) $78,400
D) $206,400

E) A) and B)
F) None of the above

Correct Answer

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Kingcade Corporation keeps careful track of the time required to fill orders. Data concerning a particular order appear below: Kingcade Corporation keeps careful track of the time required to fill orders. Data concerning a particular order appear below:   The manufacturing cycle efficiency (MCE)  was closest to: A)  0.09 B)  0.12 C)  0.67 D)  0.04 The manufacturing cycle efficiency (MCE) was closest to:


A) 0.09
B) 0.12
C) 0.67
D) 0.04

E) B) and C)
F) A) and B)

Correct Answer

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The corporate social responsibility measure of "Total workers' compensation costs" is an example of which performance measure category?


A) internal business processes.
B) customer.
C) financial.
D) learning and growth.

E) A) and C)
F) B) and C)

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ISO 9000 standards were established to make sure that all consumer products incorporate specific safety features.

A) True
B) False

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Beamer Corporation produces one product and it seems that the demand for that product is exceeding their manufacturing capacity. Below is the information concerning the machine that produces their product: Beamer Corporation produces one product and it seems that the demand for that product is exceeding their manufacturing capacity. Below is the information concerning the machine that produces their product:   Beamer's efficiency rate was: A)  0.31 B)  0.42 C)  0.60 D)  0.80 Beamer's efficiency rate was:


A) 0.31
B) 0.42
C) 0.60
D) 0.80

E) C) and D)
F) A) and D)

Correct Answer

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Vandenheuvel Corporation keeps careful track of the time required to fill orders. The times recorded for a particular order appear below: Vandenheuvel Corporation keeps careful track of the time required to fill orders. The times recorded for a particular order appear below:   The manufacturing cycle efficiency (MCE)  was closest to: A)  0.06 B)  0.18 C)  0.62 D)  0.16 The manufacturing cycle efficiency (MCE) was closest to:


A) 0.06
B) 0.18
C) 0.62
D) 0.16

E) None of the above
F) A) and D)

Correct Answer

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Circle K Toys, Incorporated manufactures toys and children's clothing and sells these products to retail outlets. The following costs were incurred in performing quality activities at Circle K during the year: Circle K Toys, Incorporated manufactures toys and children's clothing and sells these products to retail outlets. The following costs were incurred in performing quality activities at Circle K during the year:   What is the total of the prevention costs for Circle K? A)  $394,000 B)  $409,000 C)  $455,000 D)  $470,000 What is the total of the prevention costs for Circle K?


A) $394,000
B) $409,000
C) $455,000
D) $470,000

E) A) and D)
F) B) and C)

Correct Answer

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Eaglin Company's quality cost report is to be based on the following data: Eaglin Company's quality cost report is to be based on the following data:   What would be the total external failure cost appearing on the quality cost report? A)  $259,000 B)  $110,000 C)  $119,000 D)  $515,000 What would be the total external failure cost appearing on the quality cost report?


A) $259,000
B) $110,000
C) $119,000
D) $515,000

E) A) and D)
F) A) and B)

Correct Answer

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Eaglin Company's quality cost report is to be based on the following data: Eaglin Company's quality cost report is to be based on the following data:   What would be the total appraisal cost appearing on the quality cost report? A)  $194,000 B)  $175,000 C)  $112,000 D)  $167,000 What would be the total appraisal cost appearing on the quality cost report?


A) $194,000
B) $175,000
C) $112,000
D) $167,000

E) A) and C)
F) B) and C)

Correct Answer

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Financial measures such as return on investment (ROI) are generally better than nonfinancial measures of key success drivers such as customer satisfaction as leading indicators of future financial performance.

A) True
B) False

Correct Answer

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Fabrick Company's quality cost report is to be based on the following data: Fabrick Company's quality cost report is to be based on the following data:   What would be the total internal failure cost appearing on the quality cost report? A)  $142,500 B)  $84,400 C)  $96,100 D)  $34,500 What would be the total internal failure cost appearing on the quality cost report?


A) $142,500
B) $84,400
C) $96,100
D) $34,500

E) A) and B)
F) B) and C)

Correct Answer

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