Question 1

Which is not true of Total Quality Management (TQM)?
A)TQM is focused on improving product and customer service quality
B)TQM is expensive to initiate
C)TQM requires top management support
D)TQM requires ISO 9000 certification
E)All of the choices are correct

Accepted Answer

TQM does not necessarily require ISO 9000 certification, although ISO standards can be incorporated into TQM practices.

Question 2

Zagart's Zambonis manufactures Zambonis (ice rink machines).Its cost of quality data appears below.Total manufacturing cost this year was $4.6 million. $$\begin{array} { l c } & \text { \$in } \ &\quad \quad \text { thousand } & \ \text { Enginering tests at supplier's factary } & 18 \ \text { Fied tetting new product } &12 \ \text { Irtpection casts } & 42\ \text { Process re-engineering } & 50 \ \text { Product redesipn } & 42 \ \text { Rewark } & 45\ \text { Sales retuns (at cost) } & 105 \ \text { Serap } & 22 \ \text { Traing englayens an new systan } & 6 \ \text { Waranty repairs } &60\ \text { Waste } & 14 \ \text { Tatal } &416 \end{array}$$ In evaluating Zagart's Zambonis cost of quality report,which is false? A)ZZ is likely not spending enough on training relative to other costs of quality B)The external failure costs are likely understated C)ZZ is not spending enough on appraisal relative to internal and external failure costs D)ZZ is likely to have achieved its optimum quality level E)None of the choices are correct

Accepted Answer

The cost of quality report indicates significant spending on failure costs (rework, sales returns, warranty repairs, etc.) and appraisal costs, suggesting that the optimum quality level, which would minimize these costs, has likely not been achieved.

Question 3

The balanced scorecard as a measure of corporate performance has been both criticized and lauded.Which is true?
A)Deviation from a single financial measure,such as EPS,ROA or EVA,in order to focus on the multiple measures of the balanced scorecard may cause management to reduce firm value
B)Managers can focus on multiple performance indicators simultaneously
C)Maximizing customer satisfaction maximizes value of the firm
D)Maximizing employee satisfaction and learning maximizes value of the firm
E)None of the choices are correct

Accepted Answer

A

Question 4

The balanced scorecard approach
A)Derives its name from the balance it attempts to achieve among a firm's executives,managers,and shareholders.
B)Combines both decision management and decision control.
C)Translates a plan of action that identifies objectives and performance drivers into a strategy to help the organization move in the right direction.
D)Focuses on vague,open statements when setting objectives in order to allow managers flexibility to apply the objective to their individual business units.
E)Evaluates performance using 8-10 different perspectives in order to effectively incorporate all areas of the organization.

Accepted Answer

The answer of The balanced scorecard approach
A)Derives its name from...

Question 5

Typical measures of quality include:
A)percentage of defects
B)dollars spent on rework
C)number of on-time deliveries
D)customer satisfaction surveys
E)All of the choices are correct

Accepted Answer

All of the choices listed are typical measures of quality, as they assess different aspects of a product or service's performance and ability to meet customer needs and expectations. A comprehensive approach to quality management often involves tracking and analyzing multiple metrics simultaneously, to gain a more complete picture of overall quality and identify opportunities for improvement.

Question 6

Typical quality improvements include:
A)product redesign
B)electronic defect detection
C)alteration of organizational architecture to increase local responsiveness to customer needs
D)purchase of robotic manufacturing systems
E)All of the choices are correct

Accepted Answer

All of the choices are correct. Each of the improvements listed can contribute to improving the quality of a product or service. Product redesign can improve functionality or address customer feedback. Electronic defect detection can catch issues before they become major problems. Alteration of organizational architecture can improve communication and responsiveness to customer needs. Purchase of robotic manufacturing systems can improve efficiency and reduce errors.

Question 7

Which is false of just-in-time (JIT)manufacturing systems?
A)Demand pull means a closer relationship with the customer
B)The power of suppliers is reduced
C)Warehousing needs are reduced
D)After process re-engineering,time to complete the product is reduced
E)None of the choices are correct

Accepted Answer

The power of suppliers in JIT systems is actually increased, not reduced, because the manufacturing process relies heavily on the timely delivery of components and materials from suppliers. Delays or issues with suppliers can halt production, making the relationship with suppliers critical in JIT systems.

Question 8

Kosmic Kan produces Kaos,a leading edge computer game.It is implementing a balanced scorecard to assess performance across multiple dimensions.Which is not an appropriate measure? A)Financial: increase earnings per share by $0.12 B)Customer: add customer value C)Learning and innovation: recruit 50 new staff from leading schools D)Internal processes: reduce programming errors by 3% E)None of the choices are correct

Accepted Answer

The answer of Kosmic Kan produces Kaos,a leading edge...

Question 9

Internal accounting systems,including performance measures,affect behavior.It is often suggested that people pay attention to the dimensions of their work performance that are measured and rewarded.When,if ever,should these systems be revised? A)Extremely seldom: it is too costly B)Rarely: people understand how to perform under the present system C)Sometimes: whenever it can be shown that significant dysfunctional results exist D)Often: whenever management consultants develop a 'new and improved' system or measure E)Never

Accepted Answer

Internal accounting systems should be revised only when it can be shown that significant dysfunctional results exist. This means that the system is not achieving its intended purpose, and may even be causing negative outcomes. However, revising the system should not be done too often, as it may disrupt the stability and understanding of how to perform under the present system. The decision to revise should be based on careful evaluation and analysis of the system's effectiveness.

Question 10

Zagart's Zambonis manufactures Zambonis (ice rink machines).Its cost of quality data appears below.Total manufacturing cost this year was $4.6 million. $$\begin{array} { l c } & \text { \$in } \ &\quad \quad \text { thousand } & \ \text { Enginering tests at supplier's factary } & 18 \ \text { Fied tetting new product } &12 \ \text { Irtpection casts } & 42\ \text { Process re-engineering } & 50 \ \text { Product redesipn } & 42 \ \text { Rewark } & 45\ \text { Sales retuns (at cost) } & 105 \ \text { Serap } & 22 \ \text { Traing englayens an new systan } & 6 \ \text { Waranty repairs } &60\ \text { Waste } & 14 \ \text { Tatal } &416 \end{array}$$ Which is true? A)Prevention costs are $116,000 B)Appraisal costs total $72,000 C)Internal failure costs amount to $186,000 D)External failure cost ZZ $105,000 E)None of the choices are correct

Accepted Answer

The answer of Zagart's Zambonis manufactures Zambonis (ice rink...

Quiz 14: Management Accounting in a Changing Environment

Which is not true of Total Quality Management (TQM) ?

The balanced scorecard as a measure of corporate performance has been both criticized and lauded.Which is true?

The balanced scorecard approach

Typical measures of quality include:

Typical quality improvements include:

Which is false of just-in-time (JIT) manufacturing systems?

Kosmic Kan produces Kaos,a leading edge computer game.It is implementing a balanced scorecard to assess performance across multiple dimensions.Which is not an appropriate measure?

Internal accounting systems,including performance measures,affect behavior.It is often suggested that people pay attention to the dimensions of their work performance that are measured and rewarded.When,if ever,should these systems be revised?