Question 1

Identify the following quality control activities as either value-added or non-value-added.
-Preventive machine maintenance
A)Value-added
B)Non-value-added

Accepted Answer

Preventive machine maintenance can be considered value-added as it prevents machines from breaking down and causing production delays or defects.

Question 2

Identify the following quality control activities as either value-added or non-value-added.
-Design engineering
A)Value-added
B)Non-value-added

Accepted Answer

Design engineering involves creating and improving products, which adds value to the end product.

Question 3

Identity the following by their type of quality cost.
-Preventive machine maintenance
A)Preventive costs
B)Appraisal costs
C)Internal failure costs
D)External failure costs

Accepted Answer

Preventive machine maintenance is a type of preventive cost, which refers to costs incurred to prevent defects, errors, or other problems from occurring in the first place.

Question 4

Identity the following by their type of quality cost.
-Vendor quality
A)Preventive costs
B)Appraisal costs
C)Internal failure costs
D)External failure costs

Accepted Answer

Vendor quality is associated with preventive costs as it involves activities aimed at preventing defects in products or services provided by suppliers.

Question 5

Identify the following quality control activities as either value-added or non-value-added.
-Scrap material
A)Value-added
B)Non-value-added

Accepted Answer

Scrap material is considered non-value-added as it adds no value to the product or service and only increases costs.

Question 6

Identity the following by their type of quality cost.
-Scrap
A)Preventive costs
B)Appraisal costs
C)Internal failure costs
D)External failure costs

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 7

A quality control activity analysis indicated the following four activity costs of a hotel.
  Sales are $750,000 for the year.Prepare a cost of quality report.

Accepted Answer

The answer of A quality control activity analysis indicated the...

Question 8

Identity the following by their type of quality cost.
-Testing
A)Preventive costs
B)Appraisal costs
C)Internal failure costs
D)External failure costs

Accepted Answer

Testing costs fall under the category of Appraisal costs. Appraisal costs are those that are incurred to identify defects before they reach the customer. Testing ensures that the product meets the specified standards and requirements.

Question 9

Identify the following quality control activities as either value-added or non-value-added.
-Rework
A)Value-added
B)Non-value-added

Accepted Answer

Rework is a non-value-added activity as it does not add any value to the product or service. It is done to correct defects or errors that occurred during the manufacturing or service process.

Question 10

Identity the following by their type of quality cost.
-Returned merchandise
A)Preventive costs
B)Appraisal costs
C)Internal failure costs
D)External failure costs

Accepted Answer

Returned merchandise is an example of an external failure cost, as it represents a cost incurred due to a lack of quality that was not caught before the product reached the customer.

Question 11

Identity the following by their type of quality cost.
-Warranty work
A)Preventive costs
B)Appraisal costs
C)Internal failure costs
D)External failure costs

Accepted Answer

Warranty work is an example of external failure costs because it involves correcting problems or defects that were not caught before the product reached the customer, resulting in customer dissatisfaction and potentially damaging the reputation of the company.

Question 12

Identify the following quality control activities as either value-added or non-value-added.
-Finished goods inspection
A)Value-added
B)Non-value-added

Accepted Answer

The answer of Identify the following quality control activities as...

Question 13

Identify the following quality control activities as either value-added or non-value-added.
-Processing returned materials
A)Value-added
B)Non-value-added

Accepted Answer

Processing returned materials is considered non-value-added activity as it does not add any value to the product or service from the customer's perspective. It is a necessary activity to ensure quality control and customer satisfaction, but it does not add any features, performance, or functions to the product.

Question 14

Identity the following by their type of quality cost.
-Operator training
A)Preventive costs
B)Appraisal costs
C)Internal failure costs
D)External failure costs

Accepted Answer

Identify the following quality control activities as either value-added or non-value-added.
a.Value-added
b.Non-value-added

Question 15

Identify the following quality control activities as either value-added or non-value-added.
-Customer service calls
A)Value-added
B)Non-value-added

Accepted Answer

Customer service calls are typically considered non-value-added activities as they do not directly contribute to the production, design, or delivery of the product or service. However, they may still be necessary for resolving customer complaints or addressing issues with products or services.

Question 16

Identify the following quality control activities as either value-added or non-value-added.
-Materials inspection
A)Value-added
B)Non-value-added

Accepted Answer

The answer of Identify the following quality control activities as...

Question 17

Identity the following by their type of quality cost.
-Recalls
A)Preventive costs
B)Appraisal costs
C)Internal failure costs
D)External failure costs

Accepted Answer

Recalls are a type of external failure cost, as they occur when a product is found to be faulty after it has reached the customer.

Quiz 12: Lean Principles, Lean Accounting, and Activity Analysis

Identify the following quality control activities as either value-added or non-value-added. -Preventive machine maintenance

Identify the following quality control activities as either value-added or non-value-added. -Design engineering

Identity the following by their type of quality cost. -Preventive machine maintenance

Identity the following by their type of quality cost. -Vendor quality

Identify the following quality control activities as either value-added or non-value-added. -Scrap material

Identity the following by their type of quality cost. -Scrap

A quality control activity analysis indicated the following four activity costs of a hotel. Sales are $750,000 for the year.Prepare a cost of quality report.

Identity the following by their type of quality cost. -Testing

Identify the following quality control activities as either value-added or non-value-added. -Rework

Identity the following by their type of quality cost. -Returned merchandise

Identity the following by their type of quality cost. -Warranty work

Identify the following quality control activities as either value-added or non-value-added. -Finished goods inspection

Identify the following quality control activities as either value-added or non-value-added. -Processing returned materials

Identity the following by their type of quality cost. -Operator training

Identify the following quality control activities as either value-added or non-value-added. -Customer service calls

Identify the following quality control activities as either value-added or non-value-added. -Materials inspection

Identity the following by their type of quality cost. -Recalls