Question 1

When preparing the report to analyze a proposed quality improvement program,which of the following costs are included in the total costs of not undertaking the quality improvement program?

Accepted Answer

Sales returns are costs that could have been avoided if a quality improvement program had been implemented. Preventive maintenance, inspection of finished goods, and total appraisal costs are all costs associated with quality management processes, but they are not costs that would be incurred if a quality improvement program was not implemented.

Question 2

Quality management systems emphasize external failure costs.

Accepted Answer

Quality management systems emphasize prevention and detection of errors and defects before they result in external failure costs.

Question 3

All of the following are the result of producing poor-quality products except ________.

Accepted Answer

Producing poor-quality products can lead to decreased revenues, customer awareness of quality problems, and increased product repairs. However, it does not result in decreased costs as the cost of producing poor-quality products may actually be higher due to the need for rework or repairs.

Question 4

Quality management systems (QMS)are systems that help managers improve the business's performance by providing quality products and services.

Accepted Answer

Quality management systems (QMS) are specifically designed to improve an organization's ability to consistently deliver high-quality products and services that meet or exceed customers' expectations. These systems enable managers to efficiently monitor and manage all processes that impact product and service quality across the entire organization.

Question 5

Which of the following is an example of internal failure costs?

Accepted Answer

Internal failure costs are those incurred to correct defects discovered before delivery to the customer, such as the cost of reworking substandard products. Choices A, B, and D are examples of external failure costs, which are incurred when defects are discovered after delivery to the customer.

Question 6

Internal failure costs are costs incurred ________.

Accepted Answer

Internal failure costs are incurred when a company detects and corrects poor-quality goods or services before delivering them to customers. Examples include scrap and rework costs, machine downtime, and inspection costs.

Question 7

________ are costs incurred after the company delivers poor-quality goods or services to customers and then has to make things right with the customer.

Accepted Answer

External failure costs are incurred after the company delivers poor-quality goods or services to customers and then has to make things right with the customer. These costs include refunds, warranty claims, legal fees, and damage to the company's reputation.

Question 8

When preparing the report to analyze a proposed quality improvement program,which of the following costs are included in the total costs of undertaking the quality improvement program?

Accepted Answer

The answer of When preparing the report to analyze a...

Question 9

When preparing the report to analyze a proposed quality improvement program,which of the following are included in the costs to continue without the quality improvement program?

Accepted Answer

The costs to continue without the quality improvement program include internal and external failure costs. Internal failure costs are costs associated with defects found before the product or service is delivered to the customer, such as rework or scrap. External failure costs are costs associated with defects found after the product or service is delivered to the customer, such as warranty claims or customer complaints. Prevention and appraisal costs are costs associated with preventing defects from occurring and detecting and correcting them early, and are not part of the costs to continue without the quality improvement program.

Question 10

Appraisal costs are costs incurred ________.

Accepted Answer

Appraisal costs are incurred to detect poor-quality materials, goods or services. These costs are associated with inspections, testing, measuring, and auditing to evaluate conformance of products or services to quality standards. Their purpose is to ensure that products or services meet customer requirements and reduce the likelihood of defective products or services being delivered to customers.

Question 11

The costs incurred in the inspection of final products or services is an example of a(n)________.

Accepted Answer

The inspection of final products or services is an example of an appraisal cost, which refers to the costs associated with evaluating, measuring, and testing products or services to ensure that they meet quality standards before they are released to customers. Prevention costs, on the other hand, refer to the costs associated with preventing defects from occurring in the first place, such as training employees, improving processes, or developing quality systems. Internal failure costs relate to the costs incurred when defects are detected before products or services are delivered to customers, such as the costs of rework, scrap, or retesting. External failure costs refer to the costs incurred when defects are detected after products or services have been delivered to customers, such as the costs of warranty claims, product recalls, or customer complaints.

Question 12

The costs incurred in training employees is an example of a(n)________.

Accepted Answer

The costs incurred in training employees is an example of a prevention cost, as it is a cost incurred to prevent defects and errors from occurring in the first place.

Question 13

Businesses should invest up front in internal and external failure costs to reduce prevention and appraisal costs.

Accepted Answer

The answer of Businesses should invest up front in internal...

Question 14

What is a quality management system? What is the common factor in all quality management systems?

Accepted Answer

The answer of What is a quality management system? What...

Question 15

Which of the following is most likely to be categorized as an external failure cost?

Accepted Answer

External failure costs are costs incurred after the product has been shipped to customers and are associated with defects or failures that are detected by customers. The cost of lost future sales due to a product defect is a clear example of an external failure cost. Option A, testing a product before shipment, would be categorized as a prevention cost. Option B, machinery maintenance, would be categorized as an appraisal cost. Option D, inspection of materials before production, would also be categorized as a prevention cost.

Question 16

The common factor in all quality management systems is the desire to _________.

Accepted Answer

All quality management systems aim to improve performance by continuously examining and enhancing processes, procedures, and products to meet or exceed customer expectations, and enhance organizational effectiveness and efficiency. Quality inspections and repairs are a part of the quality management system, but they alone do not guarantee improved performance. Ignoring the costs and benefits of changes to products can also lead to ineffective quality management.

Question 17

A company is considering spending the following on a new quality improvement program:
  
The company expects this quality program to reduce costs by the following amounts:
  
Group each cost under the four categories of quality management systems.Comment whether the company should undertake the quality improvement program.

Accepted Answer

The answer of A company is considering spending the following...

Question 18

Quality costs are easy to measure.

Accepted Answer

Quality costs can be difficult to measure as they include not only direct costs but also indirect costs such as lost sales or damage to reputation. Additionally, determining the source of a quality cost can be challenging, as it may be the result of multiple factors.

Question 19

Costs incurred in customer service are categorized as ________.

Accepted Answer

Costs incurred in customer service are categorized as external failure costs, which refer to the expenses related to addressing customer complaints or corrective actions taken after a service has been provided but did not meet customer expectations.

Question 20

The common factor in all quality management systems is the desire to improve the business's performance by providing quality products or services.

Accepted Answer

The main objective of quality management systems is to improve the overall performance of the business by ensuring high-quality products or services. This is a common goal shared by all quality management systems, regardless of the standards or frameworks they follow.

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