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Ch14_Guan CM_AISE TB - Chapter 14Quality Cost Management...

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Chapter 14—Quality Cost Management MULTIPLE CHOICE 1. Improving quality costs can increase firm value because a. firms can increase activities. b. firms can increase costs. c. firms can increase customer demand. d. all of the above. ANS: C PTS: 1 OBJ: 14-1 2. Improving quality is an important competitive issue for a. manufacturing firms only. b. service firms only. c. supplying firms only. d. all firms. ANS: D PTS: 1 OBJ: 14-1 3. Quality experts maintain that total quality costs should NOT exceed a. 2 to 4 percent of sales. b. 2 to 4 percent of total costs. c. 2 to 4 percent of profit. d. profit. ANS: A PTS: 1 OBJ: 14-1 4. From the operational content view, a quality product or service is one that meets or exceeds 5. _______________ is a measure of how well a product meets its requirements or specifications. a. Quality of conformance b. Quality of design c. Service quality d. Taguchi quality loss function ANS: A PTS: 1 OBJ: 14-1 6. Which of the following is a correct meaning(s)for the term zero defects? 7. A defective product is one that does NOT This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher.
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8. Costs incurred to determine whether products and services are conforming to requirements are called a. external failure costs. b. internal failure costs. c. appraisal costs. d. prevention costs. ANS: C PTS: 1 OBJ: 14-1 9. _______________ are costs incurred because poor quality may or does exist. 10. An example of a prevention cost is 11. Quality training programs are classified as 12. Inspection labor costs are classified as a. external failure costs. b. internal failure costs. c. appraisal costs. d. prevention costs. ANS: C PTS: 1 OBJ: 14-1
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