Question 1

Internal failure costs result from identification of defects during the appraisal process. Such costs may include scrap, rejected products, rework, and downtime.

Accepted Answer

A) True 
 B)False  True

Question 2

What would be the total prevention cost appearing on the quality cost report?

Accepted Answer

A)  $167,000
B)  $130,000
C)  $112,000
D)  $102,000E) B) and C)
F) A) and C)

Question 3

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

Accepted Answer

A)  Product recalls.
B)  Quality engineering.
C)  Quality training.
D)  Systems development.E) C) and D)
F) A) and B)

Question 4

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

Accepted Answer

A)  Re-entering data because of keying errors.
B)  Rework labor and overhead.
C)  Net cost of scrap.
D)  Technical support provided to suppliers.E) None of the above
F) A) and B)

Question 5

What would be the total appraisal cost appearing on the quality cost report?

Accepted Answer

A)  $157,000
B)  $127,000
C)  $79,000
D)  $140,000E) A) and D)
F) A) and C)

Question 6

In order to reduce its overall quality costs, a company should focus most of its efforts on:

Accepted Answer

A)  prevention costs.
B)  appraisal costs.
C)  internal failure costs.
D)  external failure costs.E) A) and B)
F) A) and C)

Question 7

What would be the total external failure cost appearing on the quality cost report?

Accepted Answer

A)  $481,000
B)  $107,000
C)  $80,000
D)  $324,000E) A) and D)
F) C) and D)

Question 8

Galant Company's quality cost report is to be based on the following data:  Required:
Prepare a Quality Cost Report in good form with separate sections for prevention costs, appraisal costs, internal failure costs, and external failure costs.

Accepted Answer

The answer of Galant Company's quality cost report is to...

Question 9

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

Accepted Answer

A)  Supervision of testing and inspection activities.
B)  Systems development.
C)  Quality engineering.
D)  Quality training.E) A) and D)
F) A) and B) A

Question 10

An increase in appraisal costs will usually result in a decrease in internal failure costs.

Accepted Answer

A) True 
 B)False

Question 11

What would be the total appraisal cost appearing on the quality cost report?

Accepted Answer

A)  $75,000
B)  $102,000
C)  $112,000
D)  $92,000E) B) and D)
F) A) and B)

Question 12

What would be the total external failure cost appearing on the quality cost report?

Accepted Answer

A)  $124,000
B)  $524,000
C)  $132,000
D)  $245,000E) A) and D)
F) None of the above C

Question 13

The cost of warranty repairs would be classified as a(n) :

Accepted Answer

A)  prevention cost.
B)  appraisal cost.
C)  internal failure cost.
D)  external failure cost.E) C) and D)
F) B) and D)

Question 14

Falstaff Company's quality cost report is to be based on the following data:  Required:
Prepare a Quality Cost Report in good form with separate sections for prevention costs, appraisal costs, internal failure costs, and external failure costs.

Accepted Answer

The answer of Falstaff Company's quality cost report is to...

Question 15

What would be the total appraisal cost appearing on the quality cost report?

Accepted Answer

A)  $105,000
B)  $100,000
C)  $75,000
D)  $78,000E) A) and D)
F) All of the above

Question 16

What would be the total internal failure cost appearing on the quality cost report?

Accepted Answer

A)  $127,000
B)  $217,000
C)  $85,000
D)  $146,000E) None of the above
F) B) and C)

Question 17

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

Accepted Answer

A)  Supervision of testing and inspection activities.
B)  Re-entering data because of keying errors.
C)  Cost of field servicing and handling complaints.
D)  Depreciation of test equipment.E) None of the above
F) A) and B)

Question 18

The information in a quality cost report can be used to help managers determine if their quality costs are poorly distributed.

Accepted Answer

A) True 
 B)False

Question 19

Harui Company's quality cost report is to be based on the following data:  Required:
Prepare a Quality Cost Report in good form with separate sections for prevention costs, appraisal costs, internal failure costs, and external failure costs.

Accepted Answer

The answer of Harui Company's quality cost report is to...

Question 20

What would be the total external failure cost appearing on the quality cost report?

Accepted Answer

A)  $91,000
B)  $52,000
C)  $156,000
D)  $338,000E) A) and D)
F) A) and C)

Exam 3: Cost of Quality

Internal failure costs result from identification of defects during the appraisal process. Such costs may include scrap, rejected products, rework, and downtime.

Correct AnswerverifiedTrue

What would be the total prevention cost appearing on the quality cost report?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

What would be the total appraisal cost appearing on the quality cost report?

Correct AnswerverifiedShow Answer

In order to reduce its overall quality costs, a company should focus most of its efforts on:

Correct AnswerverifiedShow Answer

What would be the total external failure cost appearing on the quality cost report?

Correct AnswerverifiedShow Answer

Galant Company's quality cost report is to be based on the following data: Required: Prepare a Quality Cost Report in good form with separate sections for prevention costs, appraisal costs, internal failure costs, and external failure costs.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedA

An increase in appraisal costs will usually result in a decrease in internal failure costs.

Correct AnswerverifiedShow Answer

What would be the total appraisal cost appearing on the quality cost report?

Correct AnswerverifiedShow Answer

What would be the total external failure cost appearing on the quality cost report?

Correct AnswerverifiedC

The cost of warranty repairs would be classified as a(n) :

Correct AnswerverifiedShow Answer

Falstaff Company's quality cost report is to be based on the following data: Required: Prepare a Quality Cost Report in good form with separate sections for prevention costs, appraisal costs, internal failure costs, and external failure costs.

Correct AnswerverifiedShow Answer

What would be the total appraisal cost appearing on the quality cost report?

Correct AnswerverifiedShow Answer

What would be the total internal failure cost appearing on the quality cost report?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The information in a quality cost report can be used to help managers determine if their quality costs are poorly distributed.

Correct AnswerverifiedShow Answer

Harui Company's quality cost report is to be based on the following data: Required: Prepare a Quality Cost Report in good form with separate sections for prevention costs, appraisal costs, internal failure costs, and external failure costs.

Correct AnswerverifiedShow Answer

What would be the total external failure cost appearing on the quality cost report?

Correct AnswerverifiedShow Answer

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