Chap007
52 Pages

Chap007

Course Number: ACCOUNTING 102, Spring 2011

College/University: Faculty of English...

Word Count: 7679

Rating:

Document Preview

Chapter 07 - Managing Quality and Time to Create Value Chapter 07 Managing Quality and Time to Create Value True / False Questions 1. The return-on-quality (ROQ) view of quality management assumes that there is a tradeoff between the costs and benefits of improving quality. TRUE AACSB: Reflective Thinking AICPA FN: Measurement Difficulty: Easy Learning Objective: 1 2. A defect is an attribute of a product,...

Unformatted Document Excerpt
Coursehero >> Egypt >> Faculty of English Commerce Ain Shams University >> ACCOUNTING 102

Course Hero has millions of student submitted documents similar to the one
below including study guides, practice problems, reference materials, practice exams, textbook help and tutor support.

Course Hero has millions of student submitted documents similar to the one below including study guides, practice problems, reference materials, practice exams, textbook help and tutor support.

07 Chapter - Managing Quality and Time to Create Value Chapter 07 Managing Quality and Time to Create Value True / False Questions 1. The return-on-quality (ROQ) view of quality management assumes that there is a tradeoff between the costs and benefits of improving quality. TRUE AACSB: Reflective Thinking AICPA FN: Measurement Difficulty: Easy Learning Objective: 1 2. A defect is an attribute of a product, either tangible or intangible, that falls short of customer expectations. TRUE AACSB: Reflective Thinking AICPA BB: Critical Thinking Difficulty: Easy Learning Objective: 1 3. The optimum quality level maximizes total quality rather than total profits. FALSE AACSB: Reflective Thinking AICPA BB: Critical Thinking Difficulty: Medium Learning Objective: 1 4. The optimum quality level is always higher than the maximum quality level. FALSE AACSB: Reflective Thinking AICPA BB: Critical Thinking Difficulty: Medium Learning Objective: 1 7-1 Chapter 07 - Managing Quality and Time to Create Value 5. Total quality management (TQM) assumes that improvements in quality, as defined by customers, will always result in improved organizational performance. TRUE AACSB: Reflective Thinking AICPA BB: Marketing Difficulty: Medium Learning Objective: 1 6. Two generally accepted quality dimensions are product or service attributes and profitability from an individual customer. FALSE AACSB: Reflective Thinking AICPA BB: Marketing Difficulty: Medium Learning Objective: 1 7. A run chart is a chart that shows trends in variations in products or service attributes over time by reflecting measures of important quality features taken at defined points in time. TRUE AACSB: Reflective Thinking AICPA FN: Measurement Difficulty: Medium Learning Objective: 2 8. The maximum and minimum desired levels on a control chart are called the upper control limit and the lower control limit. TRUE AACSB: Reflective Thinking AICPA FN: Measurement Difficulty: Medium Learning Objective: 2 7-2 Chapter 07 - Managing Quality and Time to Create Value 9. A control chart describes variation in product or service attributes over time by measuring important quality features and comparing them to maximum and minimum desired levels. TRUE AACSB: Reflective Thinking AICPA FN: Measurement Difficulty: Medium Learning Objective: 2 10. A histogram is a chart that shows trends in variation in products or service attributes over time by reflecting measures of important quality features taken at defined points in time. FALSE AACSB: Reflective Thinking AICPA FN: Measurement Difficulty: Medium Learning Objective: 2 11. Cause-and effect-analysis involves formulating diagnostic signals that identify potential causes of product or service defects. TRUE AACSB: Reflective Thinking AICPA FN: Measurement Difficulty: Medium Learning Objective: 2 12. Lead indicator information usually identifies quality problems and diagnoses their cause(s). FALSE AACSB: Reflective Thinking AICPA FN: Measurement Difficulty: Medium Learning Objective: 2 7-3 Chapter 07 - Managing Quality and Time to Create Value 13. A scatter diagram is a plot of two measures that may be related. TRUE AACSB: Reflective Thinking AICPA FN: Measurement Difficulty: Medium Learning Objective: 2 14. Errors due to inadequate or outdated work instructions can be best diagnosed using run and control charts. FALSE AACSB: Reflective Thinking AICPA FN: Measurement Difficulty: Medium Learning Objective: 2 15. A flowchart is a plot of two measures that may be related that helps to diagnose causeand-effect between outcomes and activities that may drive them. FALSE AACSB: Reflective Thinking AICPA FN: Measurement Difficulty: Medium Learning Objective: 2 16. Variations in customer service leading to poor-quality service can be most effectively diagnosed using a histogram. TRUE AACSB: Reflective Thinking AICPA FN: Measurement Difficulty: Medium Learning Objective: 2 7-4 Chapter 07 - Managing Quality and Time to Create Value 17. A Pareto chart prioritizes the causes of problems or defects as bars of varying height, in order of frequency or size. TRUE AACSB: Reflective Thinking AICPA FN: Measurement Difficulty: Medium Learning Objective: 2 18. Organizations usually sort costs of quality by quality activity and express them as a percentage of total costs. FALSE AACSB: Reflective Thinking AICPA FN: Measurement Difficulty: Medium Learning Objective: 2 19. Customer satisfaction is the degree to which expectations of attributes, customer service, and price have been or are expected to be met. TRUE AACSB: Reflective Thinking AICPA BB: Marketing AICPA FN: Measurement Difficulty: Medium Learning Objective: 2 20. Wasted time would generally be categorized as an external failure activity. FALSE AACSB: Reflective Thinking AICPA FN: Measurement Difficulty: Easy Learning Objective: 2 7-5 Chapter 07 - Managing Quality and Time to Create Value 21. Redoing customer service is classified as an external failure activity. TRUE AACSB: Reflective Thinking AICPA BB: Marketing AICPA FN: Measurement Difficulty: Medium Learning Objective: 2 22. Field testing products in use at customer sites is classified as a prevention activity. FALSE AACSB: Reflective Thinking AICPA BB: Marketing AICPA FN: Measurement Difficulty: Medium Learning Objective: 2 23. Performance measurement is classified as an appraisal activity. TRUE AACSB: Reflective Thinking AICPA FN: Measurement Difficulty: Medium Learning Objective: 2 24. Internal failure activities are required to correct defective processes, products, and services that are detected after they have been delivered to customers. FALSE AACSB: Reflective Thinking AICPA FN: Measurement Difficulty: Medium Learning Objective: 2 7-6 Chapter 07 - Managing Quality and Time to Create Value 25. Engaging in marketing activities to improve a company's image that has been tarnished from poor product quality is an example of an external failure activity TRUE AACSB: Reflective Thinking AICPA BB: Marketing AICPA FN: Measurement Difficulty: Easy Learning Objective: 2 26. The Malcolm Baldrige Quality Award is awarded to companies around the world that excel in quality improvement. FALSE Difficulty: Medium Learning Objective: 2 27. The Deming Prize is awarded to companies around the world that excel in quality improvement. TRUE Difficulty: Medium Learning Objective: 2 28. New product or service development time is the period between the first consideration of a product or service and its initial sale to the customer. TRUE AACSB: Reflective Thinking AICPA BB: Marketing AICPA FN: Measurement Difficulty: Easy Learning Objective: 3 7-7 Chapter 07 - Managing Quality and Time to Create Value 29. Customer-response time is the amount of time between a customer's placing an order for a product or requesting service and delivering the product or service to the customer. TRUE AACSB: Reflective Thinking AICPA BB: Marketing AICPA FN: Measurement Difficulty: Easy Learning Objective: 3 30. Production cycle time is the elapsed time between starting and finishing a process, including any time to correct mistakes. TRUE AACSB: Reflective Thinking AICPA FN: Measurement Difficulty: Medium Learning Objective: 3 31. Production cycle time does not factor in time to correct mistakes. FALSE AACSB: Reflective Thinking AICPA FN: Measurement Difficulty: Medium Learning Objective: 3 32. Throughput is the amount of goods and services produced and delivered to customers during a period of time measured in dollar terms or physical measures. TRUE AACSB: Reflective Thinking AICPA BB: Marketing AICPA FN: Measurement Difficulty: Medium Learning Objective: 4 7-8 Chapter 07 - Managing Quality and Time to Create Value 33. Total factor productivity is measured by dividing total cost of providing goods and services by the value of goods and services. FALSE AACSB: Reflective Thinking AICPA FN: Measurement Difficulty: Hard Learning Objective: 4 34. In computing average cycle time, companies should include the time of reworking defective units. TRUE AACSB: Reflective Thinking AICPA FN: Measurement Difficulty: Medium Learning Objective: 4 35. The throughput time ratio is the ratio of time spent adding customer value to products divided by total cycle time. TRUE AACSB: Reflective Thinking AICPA BB: Marketing AICPA FN: Measurement Difficulty: Medium Learning Objective: 4 36. Cycle time is the time from the receipt of an order of a unit of existing product or service to its packaging and shipment to the customer. TRUE AACSB: Reflective Thinking AICPA BB: Marketing AICPA FN: Measurement Difficulty: Easy Learning Objective: 4 7-9 Chapter 07 - Managing Quality and Time to Create Value 37. New product development time is the period between the first consideration of a product and its initial sale to the customer. TRUE AACSB: Reflective Thinking AICPA BB: Marketing AICPA FN: Measurement Difficulty: Easy Learning Objective: 4 38. The throughput time ratio measures the relative percentage of value-added time spent on processing a customer's order. TRUE AACSB: Reflective Thinking AICPA BB: Marketing AICPA FN: Measurement Difficulty: Hard Learning Objective: 4 39. Effective production management results in higher cycle times and high throughput. FALSE AACSB: Reflective Thinking AICPA FN: Measurement Difficulty: Medium Learning Objective: 4 40. Total factor productivity is the value of goods and services divided by the cost of providing them. TRUE AACSB: Reflective Thinking AICPA FN: Measurement Difficulty: Medium Learning Objective: 4 7-10 Chapter 07 - Managing Quality and Time to Create Value 41. Practical capacity is always more than theoretical capacity. FALSE AACSB: Reflective Thinking AICPA FN: Measurement Difficulty: Medium Learning Objective: 4 42. The highest possible value of the throughput time ratio is 200%. FALSE AACSB: Reflective Thinking AICPA FN: Measurement Difficulty: Medium Learning Objective: 4 43. The objective of just-in-time (JIT) is to eliminate all defects in products. FALSE AACSB: Reflective Thinking AICPA FN: Measurement Difficulty: Medium Learning Objective: 5 44. Just-in-time (JIT) processes have short cycle times. TRUE AACSB: Reflective Thinking AICPA FN: Measurement Difficulty: Medium Learning Objective: 5 45. Inventory carrying costs include receiving, handling, storage and obsolescence. TRUE AACSB: Reflective Thinking AICPA FN: Measurement Difficulty: Easy Learning Objective: 5 7-11 Chapter 07 - Managing Quality and Time to Create Value 46. Companies using just-in-time inventory (JIT) systems generally experience lower inventory turnover than those not using JIT. FALSE AACSB: Reflective Thinking AICPA FN: Measurement Difficulty: Medium Learning Objective: 5 47. Just-in-time concepts do not apply to service organizations. FALSE AACSB: Reflective Thinking AICPA BB: Critical Thinking Difficulty: Medium Learning Objective: 5 48. A company that has implemented a just-in-time manufacturing system is utilizing the "push" philosophy of manufacturing. FALSE AACSB: Reflective Thinking AICPA BB: Critical Thinking Difficulty: Medium Learning Objective: 5 49. In a just-in-time manufacturing system, a sales order will normally trigger a production order. TRUE AACSB: Reflective Thinking AICPA BB: Critical Thinking Difficulty: Easy Learning Objective: 5 7-12 Chapter 07 - Managing Quality and Time to Create Value 50. A statistical control chart displays customer response times against the historical mean and historical variation. TRUE AACSB: Reflective Thinking AICPA FN: Measurement Difficulty: Medium Learning Objective: 6 (Appendix) 51. Control limits in a statistical control chart will always be symmetrical. FALSE AACSB: Reflective Thinking AICPA FN: Measurement Difficulty: Medium Learning Objective: 6 (Appendix) 52. A process can be out of control even if attribute measures do not violate control limits. TRUE AACSB: Reflective Thinking AICPA FN: Measurement Difficulty: Medium Learning Objective: 6 (Appendix) Multiple Choice Questions 53. Which of the following statements about quality is False? A. The maximum quality level is almost always lower than the optimum quality level b. Total delight represents a condition when a customer receives a product or service far exceeding his or her expectations of quality c. Return on quality is the view that assumes there is a tradeoff between the costs and benefits of improving quality d. Optimum quality level of products and services maximizes profits rather than quality AACSB: Reflective Thinking AICPA FN: Measurement Difficulty: Medium Learning Objective: 1 7-13 Chapter 07 - Managing Quality and Time to Create Value 54. Which of the following statements is True about the return-on-quality (ROQ) view of quality management a. Assumes that improvements in quality will always result in improved organizational performance B. Assumes that there is a trade-off between the costs of quality and the benefits of improving quality c. Has a goal of exceeding customers' quality expectations d. Assumes that customers are willing to pay a premium for higher quality products and services AACSB: Reflective Thinking AICPA BB: Marketing AICPA FN: Measurement Difficulty: Medium Learning Objective: 1 55. Which of the following is a tangible feature of a product or service? a. Reputation b. Taste c. Style D. Adherence to specifications AACSB: Reflective Thinking AICPA BB: Critical Thinking Difficulty: Medium Learning Objective: 1 56. Which of the following is an intangible feature of a product or service? a. Performance b. Adherence to specifications C. Taste d. Functionality AACSB: Reflective Thinking AICPA BB: Critical Thinking Difficulty: Medium Learning Objective: 1 7-14 Chapter 07 - Managing Quality and Time to Create Value 57. Which of the following is not a prevention activity in controlling quality? a. Certifying suppliers B. Field testing c. Quality training d. Process improvement AACSB: Reflective Thinking AICPA BB: Critical Thinking Difficulty: Medium Learning Objective: 2 58. Which of the following is a prevention activity in controlling quality? A. Designing products for manufacturability b. Inspecting machines c. Statistical process control d. Field testing AACSB: Reflective Thinking AICPA BB: Critical Thinking Difficulty: Medium Learning Objective: 2 59. Which of the following is not an internal failure activity? a. Disposal b. Delaying processes C. Warranty repairs d. Reinspecting AACSB: Reflective Thinking AICPA BB: Critical Thinking Difficulty: Easy Learning Objective: 2 7-15 Chapter 07 - Managing Quality and Time to Create Value 60. Which of the following is an external failure activity? a. Disposing of scrap b. Rework c. Delaying processes D. Restoration of reputation AACSB: Reflective Thinking AICPA BB: Critical Thinking Difficulty: Medium Learning Objective: 2 61. Which of the following is not an external failure activity? a. Resolving customer complaints b. Settling product liability C. Disposing of scrap d. Field replacements AACSB: Reflective Thinking AICPA BB: Critical Thinking Difficulty: Medium Learning Objective: 2 62. Which of the following is an appraisal activity? a. Disposing of Scrap b. Performing Rework c. Customer-complaint resolution D. Inspecting processes AACSB: Reflective Thinking AICPA BB: Critical Thinking Difficulty: Medium Learning Objective: 2 7-16 Chapter 07 - Managing Quality and Time to Create Value 63. Which of the following is an appraisal activity? a. Quality evaluations B. Statistical process control c. Warranty repairs d. Field replacements AACSB: Reflective Thinking AICPA BB: Critical Thinking Difficulty: Medium Learning Objective: 2 64. Which of the following is a prevention activity? a. Field replacements b. Warranty repairs C. Supplier certification d. Statistical process control AACSB: Reflective Thinking AICPA BB: Critical Thinking Difficulty: Medium Learning Objective: 2 65. Which of the following is an internal failure activity? a. Quality evaluations b. Inspecting materials c. Inspecting machines D. Delaying processes AACSB: Reflective Thinking AICPA BB: Critical Thinking Difficulty: Medium Learning Objective: 2 7-17 Chapter 07 - Managing Quality and Time to Create Value 66. Internal failure activities: a. Seek to prevent defects in the products or services being produced b. Inspect inputs and attributes of individual units of product or service to detect whether they conform to specifications or customer expectations C. Correct defective processes or products and services before they are delivered to customers d. Are activities required after defective products or services are delivered to customers AACSB: Reflective Thinking AICPA BB: Critical Thinking Difficulty: Medium Learning Objective: 2 67. External failure activities: a. Seek to prevent defects in the products or services being produced b. Inspect inputs and attributes of individual units of product or service to detect whether they conform to specifications or customer expectations c. Correct defective processes or products and services before they are delivered to customers D. Are activities required after defective products or services are delivered to customers AACSB: Reflective Thinking AICPA BB: Critical Thinking Difficulty: Medium Learning Objective: 2 68. Prevention activities: A. Seek to prevent defects in the products or services being produced b. Inspect inputs and attributes of individual units of product or service to detect whether they conform to specifications or customer expectations c. Correct defective processes or products and services before they are delivered to customers d. Are activities required after defective products or services are delivered to customers AACSB: Reflective Thinking AICPA BB: Critical Thinking Difficulty: Easy Learning Objective: 2 7-18 Chapter 07 - Managing Quality and Time to Create Value 69. Appraisal activities: a. Seek to prevent defects in the products or services being produced B. Inspect inputs and attributes of individual units of product or service to detect whether they conform to specifications or customer expectations c. Correct defective processes or products and services before they are delivered to customers d. Are activities required after defective products or services are delivered to customers AACSB: Reflective Thinking AICPA BB: Critical Thinking Difficulty: Medium Learning Objective: 2 70. Which of the following statements describes a histogram? a. Shows trends in variation in product or service attributes over time by reflecting measures of important quality features taken at defined points in time B. Displays frequency distribution of an attribute's measures around an average attribute value c. Describes variation in product or service attributes over time by measuring important quality features and comparing to maximum and minimum desired levels d. Plots two measures that may be related to diagnose cause and effect outcomes and activities that may drive them AACSB: Reflective Thinking AICPA FN: Measurement Difficulty: Medium Learning Objective: 2 71. Which of the following statements describes a scatter diagram? a. Shows trends in variation in product or service attributes over time by reflecting measures of b. important quality features taken at defined points in time c. Displays frequency distribution of an attribute's measures around an average attribute value d. Describes variation in product or service attributes over time by measuring important quality features and comparing to maximum and minimum desired levels E. Plots two measures that may be related to diagnose cause and effect outcomes and activities that may drive them AACSB: Reflective Thinking AICPA FN: Measurement Difficulty: Medium Learning Objective: 2 7-19 Chapter 07 - Managing Quality and Time to Create Value 72. Which of the following statements describes a run chart? A. Shows trends in variation in product or service attributes over time by reflecting measures of important quality features taken at defined points in time b. Displays frequency distribution of an attribute's measures around an average attribute value c. Describes variation in product or service attributes over time by measuring important quality features and comparing to maximum and minimum desired levels d. Plots two measures that may be related to diagnose cause and effect outcomes and activities that may drive them AACSB: Reflective Thinking AICPA FN: Measurement Difficulty: Medium Learning Objective: 2 73. Which of the following statements describes a control chart? a. Shows trends in variation in product or service attributes over time by reflecting measures of important quality features taken at defined points in time b. Displays frequency distribution of an attribute's measures around an average attribute value C. Describes variation in product or service attributes over time by measuring important quality features and comparing to maximum and minimum desired levels d. Plots two measures that may be related to diagnose cause and effect outcomes and activities that may drive them AACSB: Reflective Thinking AICPA FN: Measurement Difficulty: Medium Learning Objective: 2 74. Which of the following statements describes a flowchart? a. Shows trends in variation in product or service attributes over time by reflecting measures of important quality features taken at defined points in time b. Displays frequency distribution of an attribute's measures around an average attribute value C. Reflects cause and effect and sequential linkages among process activities d. Plots two measures that may be related to diagnose cause and effect outcomes and activities that may drive them AACSB: Reflective Thinking AICPA FN: Measurement Difficulty: Medium Learning Objective: 2 7-20 Chapter 07 - Managing Quality and Time to Create Value 75. Which of the following statements describes a Pareto chart? A. Prioritizes the causes of problems or defects as bars of varying height, in order of frequency or size b. Displays frequency distribution of an attribute's measures around an average attribute value c. Reflects cause and effect and sequential linkages among process activities d. Plots two measures that may be related to diagnose cause and effect outcomes and activities that may drive them AACSB: Reflective Thinking AICPA FN: Measurement Difficulty: Medium Learning Objective: 2 76. Cook Corporation is trying to identify potential causes of product or service defects. Which of the following will be most useful to Cook: a. Flowchart b. Pareto chart C. Cause-and-effect diagram d. Run chart AACSB: Reflective Thinking AICPA FN: Measurement Difficulty: Medium Learning Objective: 2 77. Shaw Company is trying to identify the most frequent causes of its quality problems so that it can concentrate on those that offer the greatest potential for improvement. The quality tool that would be most useful to Shaw is: a. Flowchart B. Pareto chart c. Cause-and-effect diagram d. Run chart AACSB: Reflective Thinking AICPA FN: Measurement Difficulty: Medium Learning Objective: 2 7-21 Chapter 07 - Managing Quality and Time to Create Value 78. Brice Corporation suspects that improper information given to customers by customer service is related to the time spent by employees in responding to customer service calls. The quality tool that would be most useful to Brice in diagnosing this relationship is: a. Flowchart b. Pareto chart c. Cause-and-effect diagram D. Scatter diagram AACSB: Reflective Thinking AICPA FN: Measurement Difficulty: Medium Learning Objective: 2 79. The Malcolm Baldrige Award: a. Is awarded to companies around the world that excel in quality improvement b. Is awarded to the company that does the best job of adhering to ISO 9000 standards C. Recognizes U.S. firms with outstanding records of quality improvements and quality management d. Is required to received ISO 9000 certification Difficulty: Medium Learning Objective: 2 80. The Deming Prize: A. Is awarded to companies around the world that excel in quality improvement b. Is awarded to the company that does the best job of adhering to ISO 9000 standards c. Recognizes U.S. firms with outstanding records of quality improvements and quality management d. Is required to received ISO 9000 certification Difficulty: Medium Learning Objective: 2 7-22 Chapter 07 - Managing Quality and Time to Create Value 81. Which of the following will not reduce customer response time? a. Electronic ordering b. Eliminating non-value-added activities C. Increasing production cycle time d. Eliminating bottlenecks AACSB: Reflective Thinking AICPA BB: Marketing AICPA FN: Measurement Difficulty: Easy Learning Objective: 3 82. Which of the following represents the throughput time ratio? A. Ratio of time spent adding customer value to products and services divided by total cycle time b. Ratio of total cycle time divided by time spent adding customer value to products and services c. Ratio of outcomes of a process divided by the amount of resources necessary to complete the process d. Ratio of amount of resources necessary to complete a process divided by the outcomes of a process AACSB: Reflective Thinking AICPA FN: Measurement Difficulty: Medium Learning Objective: 4 83. Which of the following is not an explanation of why a company would operate at less than theoretical capacity? a. Scheduled maintenance of equipment b. Breakdowns in equipment c. Customer demand is less than anticipated D. Customer demand is more than anticipated AACSB: Reflective Thinking AICPA BB: Critical Thinking Difficulty: Medium Learning Objective: 4 7-23 Chapter 07 - Managing Quality and Time to Create Value 84. Dunn Corporation finds that 60% of the time spent in its manufacturing process is on nonvalue added activities such as moving parts and inspection. Dunn needs to improve: a. Its throughput b. Its customer-response time C. Its throughput time ratio d. Its average cycle time AACSB: Reflective Thinking AICPA FN: Measurement Difficulty: Medium Learning Objective: 4 85. Companies using just-in-time (JIT) inventory systems will generally have: a. Higher inventory turnover and lower total sales than traditional companies b. Higher inventory turnover and higher total sales than traditional companies c. Lower inventory turnover and higher sales per employee than traditional companies D. Higher inventory turnover and higher sales per employee than traditional companies AACSB: Reflective Thinking AICPA BB: Critical Thinking Difficulty: Medium Learning Objective: 5 86. Identify the company or companies below that is (are) most likely using a traditional inventory system as opposed to a JIT system. a. Alpha b. Beta C. Gamma d. Both Alpha and Beta AACSB: Reflective Thinking AICPA BB: Critical Thinking Difficulty: Medium Learning Objective: 5 7-24 Chapter 07 - Managing Quality and Time to Create Value 87. Which of the following is not one of the three dimensions of time that successful organizations must focus on? A. The length of time of the average workweek b. Customer response time c. Cycle time d. Service development time AACSB: Reflective Thinking AICPA BB: Critical Thinking Difficulty: Easy Learning Objective: the 3 Use following to answer questions 88-91: Le Francois Company developed the following information for its first quarter cost of quality report: 88. The total cost of prevention activities for Le Francois Company is: a. $294,000 B. $224,000 c. $459,200 d. $504,000 AACSB: Reflective Thinking AICPA FN: Measurement Difficulty: Medium Learning Objective: 2 7-25 Chapter 07 - Managing Quality and Time to Create Value 89. The relevant percentage to be used to express internal failure activities at Le Francois is: a. 27.9% b. 4.77% C. 4.2% d. 15.02% AACSB: Reflective Thinking AICPA FN: Measurement Difficulty: Medium Learning Objective: 2 90. The total cost of external failure activities at Le Francois is: a. $420,560 B. $15,960 c. $117,600 d. $175,000 AACSB: Reflective Thinking AICPA FN: Measurement Difficulty: Medium Learning Objective: 2 91. The relevant percentage to be used to express appraisal activities at Le Francois is: a. 5.7% b. 33.2% c. 2.75% D. 5% AACSB: Reflective Thinking AICPA FN: Measurement Difficulty: Medium Learning Objective: 2 7-26 Chapter 07 - Managing Quality and Time to Create Value 92. Customer response time: a. Is the time it takes for a customer to respond to a direct response advertisement b. Is the period between the first consideration of a product and its initial sale to the customer C. Is the amount of time between a customer's placing an order and the product's delivery to the customer d. Is the same as cycle time AACSB: Reflective Thinking AICPA BB: Marketing AICPA FN: Measurement Difficulty: Medium Learning Objective: 3 93. Which of the following is not a component of customer response time? a. Cycle time b. Order receipt time c. Order delivery time D. Research and development time AACSB: Reflective Thinking AICPA BB: Marketing AICPA FN: Measurement Difficulty: Medium Learning Objective: 3 94. Which of the following is compatible with Just-in-Time (JIT) manufacturing techniques? a. Non-value-added activities b. Producing for inventory C. Sales order triggers a production order d. Sales forecast well in advance of production AACSB: Reflective Thinking AICPA BB: Critical Thinking Difficulty: Medium Learning Objective: 5 7-27 Chapter 07 - Managing Quality and Time to Create Value 95. Which of the following activities would be found in a "pull" manufacturing environment? a. Production runs based on production schedules b. Sales are forecast in advance of production to accommodate purchasing and production lead times c. Manufacturer ships orders from finished goods inventory D. Requirements for components trigger orders to suppliers, who ship parts immediately AACSB: Reflective Thinking AICPA BB: Critical Thinking Difficulty: Medium Learning Objective: 5 96. Which of the following is likely to be found in a "push" manufacturing environment? a. Production bottlenecks b. Little or no finished goods inventory c. Obsolete inventory D. Both A and C AACSB: Reflective Thinking AICPA BB: Critical Thinking Difficulty: Medium Learning Objective: 5 Use the following to answer questions 97-99: Listed below are selected operating costs for Miskelly Products last month: 7-28 Chapter 07 - Managing Quality and Time to Create Value 97. Miskelly's total prevention costs for the month were: A. $5,408 b. $6,980 c. $1,572 d. $6,798 AACSB: Reflective Thinking AICPA FN: Measurement Difficulty: Medium Learning Objective: 2 98. Miskelly's total appraisal costs for the month were: a. $6,980 B. $1,572 c. $2,572 d. $5,408 AACSB: Reflective Thinking AICPA FN: Measurement Difficulty: Medium Learning Objective: 2 99. Miskelly's total external failure costs for the month were a. $2,402 b. $3,914 C. $952 d. $2,962 AACSB: Reflective Thinking AICPA FN: Measurement Difficulty: Medium Learning Objective: 2 7-29 Chapter 07 - Managing Quality and Time to Create Value 100. The quality control department at Conant Manufacturing Company prepared the following diagnostic tool regarding causes of quality problems: The diagnostic tool presented above is known as a: a. Flowchart B. Pareto chart c. Histogram d. Control chart AACSB: Reflective Thinking AICPA FN: Measurement Difficulty: Medium Learning Objective: 2 7-30 Chapter 07 - Managing Quality and Time to Create Value 101. The Quality Control Department prepared the following diagnostic tool for the Production at McHugh Molding Company: The diagnostic tool present above is known as a: a. Pareto chart b. Scatter diagram C. Run Chart d. Control Chart AACSB: Reflective Thinking AICPA FN: Measurement Difficulty: Medium Learning Objective: 2 102. Consider the following information related to three manufacturing companies: The company with the most efficient use of inventories is: a. Company A B. Company B c. Company C d. More information is needed to determine the most efficient user of inventories AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Difficulty: Medium Learning Objective: 5 7-31 Chapter 07 - Managing Quality and Time to Create Value 103. Connolly Corporation has prepared a control chart of weekly average customer-response times against the historical mean and historical variation. Which of the following is a cause of cyclical behavior? A. Rotation of testing and inspection b. Changes in tools, equipment, or setups c. Worker fatigue d. Changes in environmental conditions AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Difficulty: Medium Learning Objective: 6 (Appendix) 104. A pattern of extreme jumps in behavior can be caused by: a. Worker fatigue b. Learning and improved use of resources C. Change of employees d. Periodic maintenance or training AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Difficulty: Medium Learning Objective: 6 (Appendix) 105. In a statistical control chart, the most likely cause of a run would be: a. Major differences in the quality of resources B. Accumulation of waste, scrap, and excess parts that cause congestion c. Periodic maintenance or training d. Rotation or testing and inspection AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Difficulty: Medium Learning Objective: 6 (Appendix) 7-32 Chapter 07 - Managing Quality and Time to Create Value Essay Questions 106. Stonehouse Corporation developed the following information regarding quality for the first quarter of the year 2008: Required: Prepare a cost of quality report sorting costs by quality activity and expressing in relevant percentage terms. Answer: AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Difficulty: Medium Learning Objective: 2 7-33 Chapter 07 - Managing Quality and Time to Create Value 107. Match the description of the tool used to assess quality to the appropriate name: (1) Histogram (2) Scatter Diagram (3) Run chart (4) Control chart (5) Cause and effect diagram (6) Flowchart (7) Pareto chart (a) Shows a trend in variation in product or service attributes over time by reflecting measures of important quality features taken at defined points in time. (b) Describes variation in product or service attributes by measuring important quality features and comparing to upper and lower limits. (c) Displays the frequency distribution of an attribute's measures around an average attribute value. (d) Formulates diagnostic signals that identify potential causes of product or service defects. (e) Plot of two measures that may be related. (f) Prioritizes the causes of problems or defects as bars of varying height, in order of frequency or size. (g) Reflects cause and effect and sequential linkages among process activities. Answer: (1.) c, (2.) e, (3.) a, (4.) b, (5.) d, (6.) g, (7.) f AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Difficulty: Medium Learning Objective: 2 7-34 Chapter 07 - Managing Quality and Time to Create Value 108. Identify each of the following as Prevention Activities (P), Appraisal Activities (A), Internal Failure Activities (I) or External Failure Activities (E) (1) Inspecting production materials upon delivery (2) Designing products for manufacturability (3) Process improvement (4) Warranty repairs (5) Lost sales (6) Inspecting machines (7) Rework (8) Delaying processes (9) Quality training (10) Certifying suppliers Answer: (1.) A, (2.) P, (3.) P, (4.) E, (5.) E, (6.) A, (7.) I, (8.) I, (9.) P, (10.) P AACSB: Reflective Thinking AICPA BB: Critical Thinking Difficulty: Medium Learning Objective: 2 109. Identify each of the following as Prevention Activities (P), Appraisal Activities (A), Internal Failure Activities (I) or External Failure Activities (E) (1) Field Testing (2) Statistical process control (3) Sampling at the end of process (4) Disposing of scrap (5) Quality evaluations (6) Retesting (7) Settling product liability (8) Resolving customer complaints (9) Lost sales (10) Restoring reputation Answer: (1.) A, (2.) A, (3.) A, (4.) I, (5.) P, (6.) I, (7.) E, (8.) E, (9.) E, (10.) E AACSB: Reflective Thinking AICPA BB: Critical Thinking Difficulty: Medium Learning Objective: 2 7-35 Chapter 07 - Managing Quality and Time to Create Value 110. Listed below are selected operating costs for Hershey Products last month: Required: Compute Hershey's total prevention and appraisal costs for last month. Answer: AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Difficulty: Medium Learning Objective: 2 7-36 Chapter 07 - Managing Quality and Time to Create Value 111. Ruth Farrar has been hired as the new customer service manager at Dover Automotive. Ruth has recently instituted certain new policies and training procedures to improve customer telephone service. The following data have been gathered for the most recent 10-week period: Required: a) Prepare a run chart of the most recent 10-week period. b) What does this chart indicate? Answer: (a) (b) The chart shows a dramatic improvement in customer wait time. The telephone wait time for service has dropped from 12 to 17 minutes to less than 5 minutes. Ruth should ask for a raise. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Difficulty: Medium Learning Objective: 2 Learning Objective: 3 7-37 Chapter 07 - Managing Quality and Time to Create Value 112. For each of the following products or services, indicate the most important customer quality attributes and the most important customer quality tradeoffs. (a) Personal computer (b) Legal representation in divorce court (c) New home purchase (d) Meals in a fast food restaurant (e) Airline travel (f) Prom dress (g) Cruise ship vacation (h) Auto repair Answer: Attributes (a) Speed, memory, storage, reliability, customer service (b) Effectiveness, timeliness, understanding of emotional issues (c) Location, location, location (d) Speed, flavor of food, location, existence of drive through windows (e) Comfort, services, in flight entertainment, reliability (f) Style, cost, accessibility, material (g) Food, entertainment, destination (h) Knowledge, cost, speed, accessibility of garage Quality tradeoffs (a) Speed, memory, storage, performance, reliability, customer service, cost (b) Cost, knowledge of specialty, accessibility (c) Appearance, cost, distance to job, repairs needed (d) Flavor of food, comfort, and nutritional value of food (e) Convenience of flight, time required to get to destination, comfort (f) Style, functionality, cost (g) Time of year traveled (on versus off season), location of cabin, types of services and food (h) Time, cost, convenience AACSB: Reflective Thinking AICPA BB: Critical Thinking Difficulty: Medium Learning Objective: 1 7-38 Chapter 07 - Managing Quality and Time to Create Value 113. Consider the following annual information about three companies in the same manufacturing industry: Required: (a) Compute the following for each company: (1) Sales per employee (2) Inventory turnover (3) Inventory as a percentage of sales (b) Evaluate the relative performance of the three companies. (c) Connolly is considering the implementation of a just-in-time (JIT) inventory system. What are the six factors necessary to successful implementation? Answer: (a) (b) Ainsley and Berk are far more efficient in terms of sales per employee and inventory turnover. In addition, the companies maintain a much smaller inventory as a percent of cost of goods sold than Connolly does. (c) The six factors necessary to the successful implementation of JIT are commitment to quality, creation of flexible capacity or predictable orders, achievement of reliable supplier relations, development of smooth production flow, maintenance of a well trained, motivated, flexible workforce and achievement and improvement of short cycle and customer-response times. 7-39 Chapter 07 - Managing Quality and Time to Create Value AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Difficulty: Medium Learning Objective: 5 114. Burns Corporation manufactures large kitchen appliances. The following represents financial information for two years: Required: (a) Classify these items into costs of prevention (P), appraisal (A), internal failure(I) or external failure (E) activities. (b) Calculate the ratio of prevention, appraisal, internal failure and external failure costs to sales for 2007 and 2008. (c) Prepare a cost of quality report for 2007. 7-40 Chapter 07 - Managing Quality and Time to Create Value Answer: (a) (b) 7-41 Chapter 07 - Managing Quality and Time to Create Value (c) AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Difficulty: Medium Learning Objective: 2 7-42 Chapter 07 - Managing Quality and Time to Create Value 115. Holbrook Corporation is a manufacturer of electronic stereo equipment. The following represents financial information for the year 2008: Required: (a) Classify these items into costs of prevention (P), appraisal (A), internal failure (I) or external failure (E) activities. (b) Calculate the ratio of prevention, appraisal, internal failure and external failure costs to sales for the year 2008. (c) Prepare a cost of quality report for the year 2008. Answer: (a) 7-43 Chapter 07 - Managing Quality and Time to Create Value (b) (b) 7-44 Chapter 07 - Managing Quality and Time to Create Value (c) AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Difficulty: Medium Learning Objective: 2 7-45 Chapter 07 - Managing Quality and Time to Create Value 116. Listed below are selected operating costs for Ortez Products last month: Required: a) Define internal and external failure activities b) What was Ortez's total cost of internal failure and external failure for last month? Answer: (a) Internal failure activities are required to correct defective processes or products and services which are detected before delivery to customers. External failure activities are required when defective products or services are detected after delivery to customers. (b) AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Difficulty: Medium Learning Objective: 2 7-46 Chapter 07 - Managing Quality and Time to Create Value 117. Companies are continuously seeking ways to improve quality of production and reduce costs. One of the areas is to work with suppliers to improve the quality and reliability of parts and products shipped. In an article entitled "In Defense of Activity-Based Cost Management," Robert S. Kaplan says: An ABC model can play a major role in improving supplier relationships as well. These relationships must be a vital part of any quality and cycle-time improvement program. A key insight is to use ABC to distinguish between low-price and low-cost suppliers. Traditional cost accounting, with its emphasis on purchase price variances, encourages purchasing people to continually scan the population of potential suppliers to obtain low price quotations. Most companies have learned, the hard way, that many of their low-price suppliers are actually extremely high-cost suppliers. (Source: Management Accounting: November, 1992) Required: (a) Explain what Kaplan means by "many of their low-price suppliers are actually extremely high-cost suppliers." (b)What general prevention and appraisal activities can be used to improve the quality and reliability of parts and products shipped from suppliers? Answer: (a) A low price supplier can be a high cost supplier if: They offer low prices only when they can deliver large volumes of materials. This requires the purchasing company to incur costs of storage for materials. The company must check items in through a receiving dock and incur excessive paperwork costs. The quality of the product shipped is poor, resulting in production defects and excessive quality control activities related to materials. Costs of inspection increase as defective items shipped must be inspected. Poor quality materials lead to product breakdowns, leading to external failure costs such as warranty replacements and product repairs. Delivery time may be unpredictable, leading to costs of expediting, rescheduling, unexpected plant downtime and great increases in confusion. Costs of scrap, rework and obsolescence increase due to defective items. Downtime increases due to poor quality materials. (b) Prevention activities can include certifying suppliers or by using only suppliers of materials that can guarantee high quality. Appraisal activities can include inspecting materials upon delivery and providing regular evaluation of suppliers so that they will know how well they are meeting a company's quality needs. AACSB: Reflective Thinking AICPA BB: Critical Thinking Difficulty: Medium Learning Objective: 2 7-47 Chapter 07 - Managing Quality and Time to Create Value 118. Traditionally, companies in the United States have employed a "push" manufacturing style. Studies in Activity Based Management and Quality Control have indicated that this approach is filled with many non-value-added activities, which increase overall costs and reduce profits. The "push" style is being replaced with a "pull" approach. Required: Briefly describe the major differences between the push and pull approaches. What non-value added activities are eliminated in a pull manufacturing system? Register to View Answerpush manufacturer begins by forecasting total orders for a time period. The manufacturer orders materials based on the forecast. Production schedules are produced based on the forecast. Production is then "pushed" through. Because production is based on sales, the company may end up producing units for which there is not as much demand as forecast, or have too few units available of a product for which there is heavy demand. This creates costs of storing excess inventory and opportunity cost of lost sales. In addition, because units are pushed through the system, the timing of receiving materials is not balanced to the production of activities, particularly at production bottlenecks, which results in a wasteful buildup of inventories, either temporary or permanent. Push production can reduce motivation to improve quality and can reinforce motivation to overuse non-bottleneck activities. A pull manufacturer "pulls" production through the process by customer orders, rather than "pushes" them through with master production schedules. A sales order triggers a production order. The production order triggers orders to suppliers, who ship parts immediately. The Just-in-Time approach is flexible to customer needs and requires lower inventory costs than traditional methods. Because suppliers tend to be preapproved and more reliable, costs of quality are reduced. Non-value added activities such as storage, quality control, downtime, waiting time are avoided in a pull manufacturing system. AACSB: Reflective Thinking AICPA BB: Critical Thinking Difficulty: Medium Learning Objective: 5 7-48 Chapter 07 - Managing Quality and Time to Create Value 119. Dayton Extruded Plastics is a company involved in the injection molding process of plastic extruders. The company had a process of inspection, checking line work and handling returns from customers to identify and correct quality problems. Scrapped extruders were ground into powder and fed back to the extruders as raw material; thus all scrapped extruders were reused at some point. The company's cost accounting system indicated that the cost of scrap was "zero," a view also held by Dayton Extruded's management. (Source: "Activity Based management" by Peter B. B. Turney published in Management Accounting) Required: a) Comment on the view that scrap costs were zero at Dayton Extruded Plastics. b) Identify internal and external failure activities that were required by Dayton Extruded. c) Identify prevention and appraisal activities that could have been employed. Answer: (a) Cost of scrap, if properly measured, was certainly not free. It is obvious that many nonvalue added activities were using resources at Dayton Extruded Plastics, including inspection, checking line work, handling returns from customers, and grinding and reprocessing scrapped extruders. (b) Internal failure activities: Rework of scrapped units Grinding of scrapped units Delay in process due to handling returns External failure activities: Replacing defective products Resolving customer complaints Opportunity cost of lost production on machines used for rework Restoring reputation when customers are unhappy with product Possible lost sales due to poor quality products received by customers (c) Prevention activities: The company could design products to be made without defects Evaluate the machines that are producing defective extruders for possible redesign Evaluate processes to remove causes of defects Quality control training so that machine operators can spot defective units and stop machines before excessive defective units are produced. Appraisal activities: The company should make sure that materials used conform to specifications and examine materials upon delivery The company should ensure that machines are operating properly within specifications The company could employ manual inspection of the production process and give QC inspectors the authority to shut down any machine that is malfunctioning. The company could use equipment to monitor the production process Sampling at the end of the production process could be employed to ensure quality before defective units are shipped to customers 7-49 Chapter 07 - Managing Quality and Time to Create Value AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Difficulty: Medium Learning Objective: 2 120. Manufacturers have found that the Just-in-Time (JIT) philosophy improves quality, lowers costs and improves profits. Those that have successfully implemented JIT have found that six components are necessary. Required: Identify the six components necessary to the successful implementation of JIT and briefly comment on each. Answer: The six components necessary to successful implementation of JIT are: (1) Commitment to quality. All employees must be involved in the quality process. (2) Creation of flexible capacity or predictable orders. Short setup times and the ability to customize products is necessary to respond to unique orders. (3) Achievement of reliable supplier relations. Suppliers must be reliable, providing on time deliveries of high quality materials. (4) Development of smooth production flow. Activities are configured into "cells" that focus on completing a unique order rather than linear assembly lines that are best suited to producing large batches of identical items. (5) Maintenance of a well trained, motivated, flexible workforce. Workers must be well trained and cross-trained to use various machines and work on various parts of their production cell. (6) Achievement and improvement of short cycle and customer response times. Companies must eliminate non-value added time and activities to create shorter cycle time. Unnecessary paperwork, movement of parts and assemblies all waste time. AACSB: Reflective Thinking AICPA BB: Critical Thinking Difficulty: Medium Learning Objective: 5 7-50 Chapter 07 - Managing Quality and Time to Create Value 121. Cessna, the world's largest manufacturer of single-engine aircraft and business jets, recently implemented a program to improve its production system with the goal of eliminating wasted activities throughout the company. The company's goal was to improve all aspects of product delivery from design, supply channels, production, and distribution. In a structured, 10-month process, the company took the following actions: (1) Conducted workshops and on-site events to train employees in the new system. (2) Implemented techniques to reduce the setup time required changing over machines from one product to the next. (3) Implemented visual work instructions and quality control checks in the manufacturing process. (4) Made tool, fixture and engineering design changes to prevent quality defects from occurring. (5) Redesigned the groupings of machines to shorten the flow time required to finish a product. (6) Trained operators to perform multiple jobs to distribute work according to demand. (7) Implemented quality methods assuring that defects were not passed from one workstation to another. (8) Empowered employees with decision-making powers regarding production processes by developing standard work and other metrics in the production process. (9) Implemented a "pull" system of delivering components to the manufacturing floor. (10) Implemented systems to improve order fulfillment and meet customers' demands. Required: (a) For each of the 10 numbered items, indicate whether the action taken by Cessna was a Prevention activity, Appraisal activity, Internal failure activity, or External failure activity. (b) What is meant by a "pull" system of manufacturing? Briefly describe the differences between a pull system and a traditional manufacturing system. What are the major benefits of a pull system? (Adapted from "Becoming a Lean Enterprise, A Tale of Two Firms," Strategic Finance, November, 2002) 7-51 Chapter 07 - Managing Quality and Time to Create Value Answer: (a) (b) In a pull system, the manufacturer uses long-term sales forecasting to determine its scale of operations and capacity. Production is "pulled" through the process by customer orders, rather than relying on master production schedules. This contrasts with a traditional push system where production levels are forecast from sales, beginning and ending inventory levels. Forecasting and scheduling create orders for materials, which are then pushed through the manufacturing process. If sales are less than forecast, inventories build up, leading to excess inventory levels and possible obsolescence. The pull system prevents the buildup of excess inventory, reduces production errors, streamlines production and lowers inventory levels. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Difficulty: Medium Learning Objective: 2 Learning Objective: 5 7-52

Find millions of documents on Course Hero - Study Guides, Lecture Notes, Reference Materials, Practice Exams and more. Course Hero has millions of course specific materials providing students with the best way to expand their education.

Below is a small sample set of documents:

Faculty of English Commerce Ain Shams University - ACCOUNTING - 102
Chapter 08 - Process-Costing SystemsChapter 08Process-Costing SystemsTrue / False Questions1. In process-costing, material costs are not traced to individual units of output, as in jobcosting.TRUEAACSB: Reflective ThinkingAICPA FN: MeasurementDif
Faculty of English Commerce Ain Shams University - ACCOUNTING - 102
Chapter 09 - Joint-Process CostingChapter 09Joint-Process CostingTrue / False Questions1. An intermediate product is a product that might require further processing before it issalable to the ultimate consumer, either by the producer or by another pr
Faculty of English Commerce Ain Shams University - ACCOUNTING - 102
Chapter 10 - Managing and Allocating Support-Service CostsChapter 10Managing and Allocating Support-Service CostsTrue / False Questions1. Support-service department costs are usually facility-level resource decisions.TRUEAACSB FN: MeasurementDiffic
Faculty of English Commerce Ain Shams University - ACCOUNTING - 102
Chapter 11 - Cost EstimationChapter 11Cost EstimationTrue / False Questions1. Cost estimation is the process of estimating the relationship between costs and the costdrivers that cause those costs.TRUEAACSB: AnalyticAICPA FN: MeasurementDifficult
Faculty of English Commerce Ain Shams University - ACCOUNTING - 102
Chapter 12 - Financial and Cost-Volume-Profit ModelsChapter 12Financial and Cost-Volume-Profit ModelsTrue / False Questions1. Estimates of sales price, variable costs per unit and profit targets are examples of a model'sparameter.TRUEAACSB: Analyti
Faculty of English Commerce Ain Shams University - ACCOUNTING - 102
Chapter 13 - Cost Management and Decision MakingChapter 13Cost Management and Decision MakingTrue / False Questions1. An analysis of outsourcing requires an analysis of quality as well as costs.TRUEAACSB: AnalyticAICPA BB: Critical ThinkingAICPA F
Faculty of English Commerce Ain Shams University - ACCOUNTING - 102
Chapter 14 - Strategic Issues in Making Long-Term Capital Investment DecisionsChapter 14Strategic Issues in Making Long-Term Capital Investment DecisionsTrue / False Questions1. Strategic planning is the decisions that management makes on a daily basi
Faculty of English Commerce Ain Shams University - ACCOUNTING - 102
Chapter 15 - Budgeting and Financial PlanningChapter 15Budgeting and Financial PlanningTrue / False Questions1. A slightly inaccurate sales forecast will not affect the other schedules comprising themaster budget.FALSEAACSB: AnalyticAICPA BB: Crit
Faculty of English Commerce Ain Shams University - ACCOUNTING - 102
Chapter 17 - Flexible Budgets, Overhead Cost Management, and Activity-Based BudgetingChapter 17Flexible Budgets, Overhead Cost Management, and Activity-BasedBudgetingTrue / False Questions1. A flexible budget is a budget that is valid within the firm
Faculty of English Commerce Ain Shams University - ACCOUNTING - 102
Chapter 18 - Organizational Design, Responsibility Accounting, and Evaluation of Divisional PerformanceChapter 18Organizational Design, Responsibility Accounting, and Evaluationof Divisional PerformanceTrue / False Questions1. Responsibility accounti
Faculty of English Commerce Ain Shams University - ACCOUNTING - 102
Chapter 19 - Transfer PricingChapter 19Transfer PricingTrue / False Questions1. The transfer price should be chosen so that each division manager, when striving tomaximize his or her own division's profits, makes the decision that maximizes the compa
Faculty of English Commerce Ain Shams University - ACCOUNTING - 102
Chapter 20 - Performance Measurement SystemsChapter 20Performance Measurement SystemsTrue / False Questions1. Leading indicators are measures that identify future financial and non-financial outcomesas guides to management decision making.TRUEAACSB
Faculty of English Commerce Ain Shams University - ECONOMICS - 120
Chapter 1: IntroductionMultiple Choice Questions1. Historians of economic thought often describe _ written by _ andpublished in _ as the first real exposition of an economic model.A."Of the Balance of Trade, David Hume, 1776B."Wealth of Nations," D
Faculty of English Commerce Ain Shams University - ECONOMICS - 120
Chapter 2: Labor Productivity and Comparative Advantage - The Ricardian ModelMultiple Choice Questions1.Countries trade with each other because they are _ and because of _.A.different, costsB.similar, scale economiesC.different, scale economiesD
Faculty of English Commerce Ain Shams University - ECONOMICS - 120
Chapter 3: Specific Factors and Income DistributionMultiple Choice Questions1. International trade has strong effects on income distributions. Therefore, internationaltradeA.is beneficial to everyone in both trading countries.B.will tend to hurt on
Faculty of English Commerce Ain Shams University - ECONOMICS - 120
Chapter 4: Resources and Trade: The Heckscher-Ohlin Model1. In the 2-factor, 2 good Heckscher-Ohlin model, an influx of workers from across theborder wouldA.move the point of production along the production possibility curve.B.shift the production p
Faculty of English Commerce Ain Shams University - ECONOMICS - 120
Chapter 5: The Standard Trade Model1. The concept terms of trade meansA.the amount of exports sold by a country.B.the price conditions bargained for in international markets.C.the price of a country's exports divided by the price of its imports.D.
Faculty of English Commerce Ain Shams University - ECONOMICS - 120
Chapter 6: Economies of Scale, Imperfect Competition, and International Trade1. External economies of scale arise when the cost per unitA.rises as the industry grows larger.B.falls as the industry grows larger rises as the average firm grows larger.
Faculty of English Commerce Ain Shams University - ECONOMICS - 120
Chapter 7: International Factor MovementsMultiple Choice Questions1.Which of the following differs in its essential analytical framework?A.International trade in goodsB.International conflict resolutionC.International trade in servicesD.Interna
Faculty of English Commerce Ain Shams University - ECONOMICS - 120
Chapter 8: The Instruments of Trade PolicyMultiple Choice Questions1.Specific tariffs areA.import taxes stated in specific legal statutes.B.import taxes calculated as a fixed charge for each unit of imported goods.C.import taxes calculated as a f
Faculty of English Commerce Ain Shams University - ECONOMICS - 120
Chapter 9: The Political Economy of Trade PolicyMultiple Choice Questions1. The efficiency case made for free trade is that as trade distortions such as tariffs aredismantled and removed,A.government tariff revenue will decrease, and therefore nation
Faculty of English Commerce Ain Shams University - ECONOMICS - 120
Chapter 10: Trade Policy in Developing Countries1. The infant industry argument was an important theoretical basis forA.Neo-colonialist theory of international exploitation.B.Import - substituting industrialization.C.Historiography of the industria
Faculty of English Commerce Ain Shams University - ECONOMICS - 120
Chapter 11: Controversies in Trade Theory1. The existence of positive externalities due to the impossibility of full appropriabilityA.Supports the conclusions of the Heckscher-Ohlin model.B.Rejects the usefulness of government protectionism.C.Suppo
Faculty of English Commerce Ain Shams University - ECONOMICS - 120
Chapter 12: National Income Accounting and the Balance of PaymentsMultiple Choice Questions1.Over the decade from 1991 to 2000,A.Japans national product grew at an annual average rate of only 3.0 percentwhile that of the United States grew by nearly
Faculty of English Commerce Ain Shams University - ECONOMICS - 120
Chapter 13: Exchange Rates and the Foreign Exchange Market: An Asset ApproachMultiple Choice Questions1.How many dollars would it cost to buy an Edinburgh Woolen Mill sweater costing 50British pounds if the exchange rate is 1.25 dollars per one Britis
Faculty of English Commerce Ain Shams University - ECONOMICS - 120
Chapter 14: Money, Interest Rates, and Exchange RatesMultiple Choice Questions1.The exchange rate between currencies depends onA. the interest rate that can be earned on deposits of those currencies.B. the expected future exchange rate.C. the intere
Faculty of English Commerce Ain Shams University - ECONOMICS - 120
Chapter 15: Price Levels and the Exchange Rate in the Long RunMultiple Choice Questions1.In order for the condition E$/HK$ = Pus/PHK to hold, what assumptions does theprinciple of purchasing power parity make?A.No transportation costs and restrictio
Faculty of English Commerce Ain Shams University - ECONOMICS - 120
Chapter 16: Output and the Exchange Rate in the Short RunMultiple Choice Questions1. How does an increase in the real exchange rate affect exports and imports?A.Exports increase; imports decreaseB.Exports decrease; imports increase.C.Exports incre
Faculty of English Commerce Ain Shams University - ECONOMICS - 120
Chapter 17: Fixed Exchange Rates and Foreign Exchange InterventionMultiple Choice Questions1.Why is the reserve center in the reserve currency fixed rate system asymmetric?A.The reserve center fixes its exchange rate against the reserve currency, and
Faculty of English Commerce Ain Shams University - ECONOMICS - 120
Chapter 18: The International Monetary System, 1870 1973Multiple Choice Questions1.Under the price-specie-flow mechanism, what happens when Germanys currentaccount surplus is greater than its non-reserve capital account deficits?A.German loans will
Faculty of English Commerce Ain Shams University - ECONOMICS - 120
Chapter 19: Macroeconomic Policy and Coordination under Floating Exchange RatesMultiple Choice Questions1.Advocates of floating rate suggested it is favorable for economies for the followingreasons EXCEPT thatA.it discourages attack from foreign exc
Faculty of English Commerce Ain Shams University - ECONOMICS - 120
Chapter 20: Optimum Currency Areas and the European ExperienceMultiple Choice Questions1.What are the biggest advantages the U.S. has above the EU in terms of being anOptimum Currency Area?A.Low mobility of labor, higher labor productivity, lower le
Faculty of English Commerce Ain Shams University - ECONOMICS - 120
Chapter 21: The Global Capital Market: Performance and Policy ProblemsMultiple Choice Questions1. What are three things to measure for in evaluating the performance of the capitalmarkets?A.Level of Intertemporal Trade, International Trade, Portfolio
Faculty of English Commerce Ain Shams University - ECONOMICS - 120
Chapter 22 Developing Countries: Growth, Crisis, and Reform Multiple Choice Questions 1. The worlds economies can be divided into four main categories according to their annual per-capita income levels: low-income, lower middle-income, upper middle- incom
American University of Sharjah - MGMT - 781
1. What were some of the challenges RIM faced to protect its intellectualProperty and how did RIM handle those challenges?Protecting intellectual property is a very important factor, especially for IT sector.RIM was no exception to face the legal conse
UCLA - PHYS - 1A
Physics 160-01 Exam #1Name:_Box #_20 points each.1) For the following three vectors, what is 2C (4 A B) ?A 4.00i 3.00 2.00k ,jB2.00i 6.00 1.00k ,jC 2.00i 3.00k4 A 16i 12 8kj4A Bi162j126k81( 12 48)i (16 16) ( 96 24)kj60i 0 120kj2C
UCLA - PHYS - 1A
UCLA - PHYS - 1A
UCLA - PHYS - 1A
UCLA - PHYS - 1A
UCLA - PHYS - 1A
UCLA - PHYS - 1A
UCLA - PHYS - 1A
UCLA - PHYS - 1A
UCLA - PHYS - 1A
UCLA - PHYS - 1A
UCLA - PHYS - 1A
UCLA - PHYS - 1A
Physics 1A, Practice Problem 3April 21, 20101Free Kick (30pts)You are charged with taking a free kick in the most important soccer game of the century. Your teammatehas been fouled a distance Dg = 30 m from the goal (see gure). In order to score a go
UCLA - PHYS - 1A
7/30/10; revised 8/2/10 - cdbWELCOME to PHYSICS 1A - SUMMER 2010SYLLABUSWe will cover the first 12 chapters of Young and Freedman University Physics, either 12thEdition or Custom Edition for UCLA (available in UCLA Bookstore).Goals: Understand some o
UCLA - MATH - 33a
Mathematics 33A, First Midterm, October 16, 2009.Calculators, books, or notes of any kind are not allowed on this exam. Do not use any paperother than that provided. (You may write on the back if you need more space, but indicatethis clearly on the fro
UCLA - MATH - 33a
Mathematics 33A, Second Midterm, November 6, 2009.Calculators, books, or notes of any kind are not allowed on this exam. Do not use any paperother than that provided. (You may write on the back if you need more space, but indicatethis clearly on the fr
UCLA - MATH - 33a
MATH 33A/2 PRACTICE MIDTERM 2Problem 1. (True/False) . 1 1 1 Problem 2. Let v1 = 1 , v2 = 0 , v3 = 1 . 0 1 1 3 (a) Show that B = 1 , v2 , v3 ) is a basis for R . (v 1 (b) Let u = 1 . Find the coordinates of u with respect to the basis B. 2 (c) Find the c
UCLA - MATH - 33a
Practice Midterm 11a) Find the inverse of the matrix111A= 1 2 3 1361b) Use part a) to solve1Ax = 0 11c) What is the kernel and the image of the linear transformation given byA?2) Let T1 be a linear transformation from the plane to itself with m
UCLA - MATH - 33a
Name:Student ID:Section: 2Prof. Alan J. Laub Math 33A FINAL EXAMINATION Spring 2008 Instructions:June 9, 2008(a) The exam is closed-book (except for one page of notes) and will last two and a half (2.5) hours. (b) Notation will conform as closely as
UCLA - MATH - 33a
Name:Student ID:Section: 2Prof. Alan J. Laub Math 33A MIDTERM EXAMINATION I Spring 2008 Instructions:Apr. 25, 2008(a) The exam is closed-book (except for one page of notes) and will last 50 minutes. (b) Notation will conform as closely as possible to
UCLA - MATH - 33a
Name:Student ID:Prof. Alan J. LaubSection: 2May 16, 2008Math 33A MIDTERM EXAMINATION IISpring 2008Instructions:(a) The exam is closed-book (except for one page of notes) and will last 50 minutes.(b) Notation will conform as closely as possible to
UCLA - MATH - 33a
Mathematics 33A, Practice Midterm, October 12, 2009.Calculators, books, or notes of any kind are not allowed on the exam.There are 11 items on this practice exam altogether, and they all have equal value. Answeras many of them as you can in 50 minutes.
UCLA - MATH - 33a
Mathematics 33A, Practice Midterm, November 2, 2009.Calculators, books, or notes of any kind are not allowed on the exam.There are 12 items on this practice exam altogether, and they all have equal value. Answeras many of them as you can in 50 minutes.
UCLA - MATH - 33a
Math 33A, Section 3, Fall 2009Name:UID:Quiz #3A=1 2 0 01 0 2 1(a) (5 points)Find image(A) and write it as a linear span of as few vectors as possible, i.e. without anyredundant vectors.(b) (5 points)Find kernel(A) and write it as a linear span
UCLA - MATH - 33a
Math 33A, Section 3, Fall 2009Quiz #3 Solutions1 2 0 01 0 2 1A=(a) (5 points)Find image(A) and write it as a linear span of as few vectors as possible, i.e. without anyredundant vectors.Solution.image(A) = spancfw_11,2002,,01 = spancf
UCLA - MATH - 33a