Question 1

Nidek manufactures sport swear.Classify each of the following quality costs as prevention, appraisal, internal failure or external failure.
A)Internal failure
B)Prevention
C)Appraisal
D)External failure
-Downtime due to quality problems

Accepted Answer

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Question 2

Cari and Jereme just bought a bed and breakfast inn at a very attractive price.The business had been doing poorly.Before they reopened the inn for business, they attended a seminar on operating a high quality business.Now that they are ready to open the inn, they need some advice on quality costs and management.Required:
Identify four categories of quality costs.In addition, identify three items that would be classified in each of the categories.

Accepted Answer

The answer of Cari and Jereme just bought a bed...

Question 3

Compare financial and nonfinancial performance, and explain why planning and control systems should consider both.

Accepted Answer

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Question 4

LaCrosse Products has a budget of $900,000 in 2019 for prevention costs.If it decides to automate a portion of its prevention activities, it will save $80,000 in variable costs.The new method will require $40,000 in training costs and $100,000 in annual equipment costs.Management is willing to adjust the budget for an amount up to the cost of the new equipment.The budgeted production level is 150,000 units.Appraisal costs for the year are budgeted at $600,000.The new prevention procedures will save appraisal costs of $50,000.Internal failure costs average $15 per failed unit of finished goods.The internal failure rate is expected to be 3% of all completed items.The proposed changes will cut the internal failure rate by one-third.Internal failure units are destroyed.External failure costs average $54 per failed unit.The company's average external failures average 3% of units sold.The new proposal will reduce this rate by 50%.Assume all units produced are sold and there are no ending inventories.Required:
a.What is the net change in the budget of prevention costs if the procedures are automated in 2019? Will management agree with the changes?
b.How much will internal failure costs change if the internal product failures are reduced by 1/3 with the new procedures?
c.How much do external failure costs change if all changes are as anticipated with the new prevention procedures? Assume all units produced are sold and there are no ending inventories.

Accepted Answer

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Question 5

A corporation can measure its quality performance by using financial or nonfinancial measures of quality.Discuss the merits of each method and whether the use of one precludes the use of the other.

Accepted Answer

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Question 6

Nidek manufactures sport swear.Classify each of the following quality costs as prevention, appraisal, internal failure or external failure.
A)Internal failure
B)Prevention
C)Appraisal
D)External failure
-Maintaining a complaint department

Accepted Answer

The answer of Nidek manufactures sport swear.Classify each of the...

Question 7

Nidek manufactures sport swear.Classify each of the following quality costs as prevention, appraisal, internal failure or external failure.
A)Internal failure
B)Prevention
C)Appraisal
D)External failure
-Expediting work to meet delivery schedule

Accepted Answer

The answer of Nidek manufactures sport swear.Classify each of the...

Question 8

Nidek manufactures sport swear.Classify each of the following quality costs as prevention, appraisal, internal failure or external failure.
A)Internal failure
B)Prevention
C)Appraisal
D)External failure
-Disposal of spoiled work in process

Accepted Answer

The answer of Nidek manufactures sport swear.Classify each of the...

Question 9

Nidek manufactures sport swear.Classify each of the following quality costs as prevention, appraisal, internal failure or external failure.
A)Internal failure
B)Prevention
C)Appraisal
D)External failure
-Scrap

Accepted Answer

Scrap is a result of a product failing to meet quality standards during the production process, making it an example of internal failure costs.

Question 10

Define cost of quality (COQ), list the four categories, and provide an example of each.

Accepted Answer

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Question 11

Wilson's Language School manufactures CDs and DVDs to teach English as a Second Language.Wilson has just prepared a Cost of Quality Report, and the staff has noticed a decline in prevention costs as a percentage of total sales over a three-year period.What changes might Wilson expect to see in appraisal costs as a percentage of sales, internal failure costs as a percentage of sales, and external failure costs as a percentage of sales given this trend?

Accepted Answer

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Question 12

Nidek manufactures sport swear.Classify each of the following quality costs as prevention, appraisal, internal failure or external failure.
A)Internal failure
B)Prevention
C)Appraisal
D)External failure
-Reinspection

Accepted Answer

The answer of Nidek manufactures sport swear.Classify each of the...

Question 13

The Brick Shirt House is concerned about its declining sales, especially the reduction in the number of customers.For the last two years its shirts have won industry awards for high quality and trend-setting styles.At the latest executive managers' meeting everyone was blaming everyone else for the decline.After much discussion, and the presenting of some fact-finding information, it was determined that sales relationships were the cause of most of the problems.Required:What may be some of the causes and how can the causes be detected if product quality is not an issue?

Accepted Answer

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Question 14

Nidek manufactures sport swear.Classify each of the following quality costs as prevention, appraisal, internal failure or external failure.
A)Internal failure
B)Prevention
C)Appraisal
D)External failure
-Rework direct manufacturing labour and overhead

Accepted Answer

The answer of Nidek manufactures sport swear.Classify each of the...

Question 15

Nidek manufactures sport swear.Classify each of the following quality costs as prevention, appraisal, internal failure or external failure.
A)Internal failure
B)Prevention
C)Appraisal
D)External failure
-Field testing

Accepted Answer

The answer of Nidek manufactures sport swear.Classify each of the...

Question 16

Nidek manufactures sport swear.Classify each of the following quality costs as prevention, appraisal, internal failure or external failure.
A)Internal failure
B)Prevention
C)Appraisal
D)External failure
-Testing and inspecting of direct materials

Accepted Answer

The answer of Nidek manufactures sport swear.Classify each of the...

Question 17

Discuss how a manufacturer of personal computers such as Dell Computer can benefit from the introduction of a quality improvement program.

Accepted Answer

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Question 18

Nidek manufactures sport swear.Classify each of the following quality costs as prevention, appraisal, internal failure or external failure.
A)Internal failure
B)Prevention
C)Appraisal
D)External failure
-Product liability

Accepted Answer

The answer of Nidek manufactures sport swear.Classify each of the...

Question 19

Nidek manufactures sport swear.Classify each of the following quality costs as prevention, appraisal, internal failure or external failure.
A)Internal failure
B)Prevention
C)Appraisal
D)External failure
-Testing and inspecting of machinery

Accepted Answer

The answer of Nidek manufactures sport swear.Classify each of the...

Question 20

Nidek manufactures sport swear.Classify each of the following quality costs as prevention, appraisal, internal failure or external failure.
A)Internal failure
B)Prevention
C)Appraisal
D)External failure
-Quality training

Accepted Answer

The answer of Nidek manufactures sport swear.Classify each of the...

Quiz 10: Analysis of Cost Behaviour

Nidek manufactures sport swear.Classify each of the following quality costs as prevention, appraisal, internal failure or external failure. A)Internal failure B)Prevention C)Appraisal D)External failure -Downtime due to quality problems

Compare financial and nonfinancial performance, and explain why planning and control systems should consider both.

A corporation can measure its quality performance by using financial or nonfinancial measures of quality.Discuss the merits of each method and whether the use of one precludes the use of the other.

Nidek manufactures sport swear.Classify each of the following quality costs as prevention, appraisal, internal failure or external failure. A)Internal failure B)Prevention C)Appraisal D)External failure -Maintaining a complaint department

Nidek manufactures sport swear.Classify each of the following quality costs as prevention, appraisal, internal failure or external failure. A)Internal failure B)Prevention C)Appraisal D)External failure -Expediting work to meet delivery schedule

Nidek manufactures sport swear.Classify each of the following quality costs as prevention, appraisal, internal failure or external failure. A)Internal failure B)Prevention C)Appraisal D)External failure -Disposal of spoiled work in process

Nidek manufactures sport swear.Classify each of the following quality costs as prevention, appraisal, internal failure or external failure. A)Internal failure B)Prevention C)Appraisal D)External failure -Scrap

Define cost of quality (COQ), list the four categories, and provide an example of each.

Nidek manufactures sport swear.Classify each of the following quality costs as prevention, appraisal, internal failure or external failure. A)Internal failure B)Prevention C)Appraisal D)External failure -Reinspection

Nidek manufactures sport swear.Classify each of the following quality costs as prevention, appraisal, internal failure or external failure. A)Internal failure B)Prevention C)Appraisal D)External failure -Rework direct manufacturing labour and overhead

Nidek manufactures sport swear.Classify each of the following quality costs as prevention, appraisal, internal failure or external failure. A)Internal failure B)Prevention C)Appraisal D)External failure -Field testing

Nidek manufactures sport swear.Classify each of the following quality costs as prevention, appraisal, internal failure or external failure. A)Internal failure B)Prevention C)Appraisal D)External failure -Testing and inspecting of direct materials

Discuss how a manufacturer of personal computers such as Dell Computer can benefit from the introduction of a quality improvement program.

Nidek manufactures sport swear.Classify each of the following quality costs as prevention, appraisal, internal failure or external failure. A)Internal failure B)Prevention C)Appraisal D)External failure -Product liability

Nidek manufactures sport swear.Classify each of the following quality costs as prevention, appraisal, internal failure or external failure. A)Internal failure B)Prevention C)Appraisal D)External failure -Testing and inspecting of machinery

Nidek manufactures sport swear.Classify each of the following quality costs as prevention, appraisal, internal failure or external failure. A)Internal failure B)Prevention C)Appraisal D)External failure -Quality training