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

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Unformatted text preview: Chapter 14Quality 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 a. customer expectations. b. customer satisfaction. c. company targets. d. company standards. ANS: A PTS: 1 OBJ: 14-1 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? a. all products conform to specifications b. there are no unusable products c. all products are usable or can be reworked d. all of the above ANS: A PTS: 1 OBJ: 14-1 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. a. appeal to customers. b. pass inspection. c. satisfy customers. d. conform to specifications. ANS: D PTS: 1 OBJ: 14-1 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. a. Costs of quality b. Internal failure costs c. External failure costs d. Appraisal costs ANS: A PTS: 1 OBJ: 14-1 10. An example of a prevention cost is a. field testing. b. quality audits. c. reinspection. d. repair costs. ANS: B PTS: 1 OBJ: 14-1 11. Quality training programs are classified as a. external failure costs. b. internal failure costs. c. appraisal costs. d. prevention costs. ANS: D PTS: 1 OBJ: 14-1 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 13. Product inspection is a(n) a. external failure cost. b. internal failure cost. c. appraisal cost. d. prevention cost. ANS: C PTS: 1 OBJ: 14-1 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. 14. Costs incurred because products or services fail to meet requirements after delivery to customers are...
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This note was uploaded on 01/19/2012 for the course ACC 3302 taught by Professor Pence during the Fall '10 term at University of Houston - Downtown.

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

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