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Unformatted text preview: 17 Student: _______________________________________________________________________________________ 1. The Taguchi Quality Loss Function (QLF) demonstrates that as the quality measure of a product declines, the loss due to quality defects: A. Increases as a quadratic function. B. Increases as a linear function. C. Increases as an exponential function. D. Decrease as a quadratic function. E. Increase as a step function. 2. The quality cost of prevention : A. Includes the cost of detecting poor-quality outputs. B. Refers only to zero-defect programs. C. Is considered an "upstream" cost. D. Is a component of the cost of non-conformance. E. Decreases "upstream costs." 3. Which of the following is not an expected result of improved quality of operations? A. Decreased inventory turnover. B. Higher product/service selling prices. C. Faster throughput time. D. Lower total manufacturing cost. 4. ISO 14000: A. Provides a set of quality standards that relate to environmental management. B. Is required under current International Financial Reporting Standards (IFRS). C. Is a requirement for receipt of the Baldrige Quality Award in the U.S. D. Provides general standards for quality assurance by companies and organizations. 5. Typically, as prevention and appraisal costs increase, other costs of quality: A. Are not affected. B. Change, but the direction cannot be predicted. C. Increase proportionately. D. Decrease. E. Decrease proportionally. 6. Regardless of the differences in format, a common feature that should be present in any Cost-of-Quality (COQ) Report is that the report: A. Promotes the management and control of quality-related costs. B. Classifies costs by product line. C. Classifies costs by cost center or profit center. D. Classifies costs by behavior (e.g., fixed versus variable). E. Classifies costs by the external value stream. 7. A common characteristic among control charts, histograms, Pareto diagrams, and cause-and-effect diagrams is that they are: A. Easy to design and prepare. B. Based on the same scale. C. Visual representations of quality-related problems. D. Statistically-based. E. All useful tools for preventing quality problems from occurring. 8. The set of international quality-related standards, adopted in 1987 and revised in both 1994 and in 2000, is referred to as: A. ISO 14000. B. International Financial Reporting Standard No. 14000. C. International Financial Reporting Standard No. 9000. D. ISO 9000. E. SEC Release 20-F. 9. Studies have shown that improvements in quality can lead to: A. A higher total cost as additional costs are spent to improve quality. B. Lower productivity because of the need to meet a higher quality standard. C. Increases in throughput time....
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- Summer '10
- Cost Accounting, b. c. d., A. B. C. D.