Question 1

Which of the following is true about quality management systems?
A)Quality management systems only use financial measures to assess success or failure.
B)External failure costs are the easiest quality costs to measure.
C)Businesses should invest upfront in prevention and appraisal costs.
D)Prevention,appraisal and internal costs are not considered in the cost of products.

Accepted Answer

Quality management systems recognize the importance of investing in prevention and appraisal costs upfront in order to avoid higher costs associated with external failures. Therefore, businesses should prioritize investment in prevention and appraisal costs. Financial measures are not the only metrics used to assess success or failure in quality management systems, and external failure costs are not necessarily the easiest to measure. Finally, prevention, appraisal, and internal costs are all components of the cost of products and are considered in quality management systems.

Question 2

Match between columns
                        Premises: Technical support provided to suppliers
Rework substandard products
Disposal of defective products during production
Warranty repairs and replacements
Inspection of test equipment
Field testing and appraisal at customer site
Liability arising from defective products

Accepted Answer

The Answer of Internal failure costs and Prevention costs and is...

Quiz 19: Cost Management Systems: Activity-Based, just-In-Time, and Quality Management Systems

Which of the following is true about quality management systems?

Distinguish the following costs as prevention,appraisal,internal failure,or external failure: