Question 1

The just-in-time inventory system is considered a:

Accepted Answer

The just-in-time inventory system is considered a demand-pull system because it aligns inventory orders with actual customer demand, reducing waste and improving efficiency.

Question 2

Under a value chain approach to quality management, product inspections are an example of which category of quality costs?

Accepted Answer

Product inspections are a form of appraisal activity, which is a type of quality cost associated with activities aimed at measuring, evaluating, or auditing a product or service to ensure conformance with quality standards. Examples of appraisal activities include testing, inspections, and audits.

Question 3

NRL's accounting information system reported warranty repair and product replacement costs totaling $120,000 in a recent accounting period. These costs are an example of which type of quality costs?

Accepted Answer

Warranty repair and replacement costs are considered external activity costs because they happen after the product has been sold and delivered to the customer. These costs are incurred as a result of a failure to meet customer expectations and are therefore seen as a cost of poor quality.

Question 4

The total quality management (TQM) approach originated in:

Accepted Answer

The total quality management (TQM) approach originated in Japan in the 1950s and 1960s, particularly among Japanese manufacturing companies such as Toyota. TQM emphasizes continuous improvement, customer satisfaction, and involvement of all employees in the quality improvement process. It became a major influence on management practices worldwide, particularly in the United States, during the 1980s and 1990s.

Question 5

The statement concerning total quality management (TQM) that is not true is:

Accepted Answer

The statement that is not true is C. The units cost of the product or service generally decrease as quality is improved, not increase. Therefore, options A, B, and D are all true statements.

Question 6

The statement that is incorrect concerning total quality management is:

Accepted Answer

All of the statements are correct. Total quality management involves a strong customer focus, emphasis on process management and extensive employee participation and training.

Quiz 16: Strategic Management Control: a Lean Perspective