Question 1

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) B) and D)
F) All of the above

Question 2

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

Question 3

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

Question 4

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 5

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

Accepted Answer

A) True 
 B)False

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) B) and C)
F) All of the above

Question 7

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) B) and C)
F) None of the above

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

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) C) and D)
F) B) and C)

Question 10

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

Question 11

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) B) and C)

Question 12

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 13

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 14

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 B)
F) A) and C)

Question 15

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) None of the above
F) All of the above C

Question 16

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

Question 17

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

Question 18

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

Question 19

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

Question 20

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

Exam 3: Cost of Quality

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

Correct AnswerverifiedA

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

Correct AnswerverifiedShow Answer

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

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 internal 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

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

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

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 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

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

Correct AnswerverifiedShow Answer

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

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 AnswerverifiedShow Answer

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

Correct AnswerverifiedTrue

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A

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C

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True