Question 1

According to the robust view, a gain is experienced from varying a product target value.

Accepted Answer

False

Question 2

ISO 9000 is a set of international quality standards which are adopted by companies.

Accepted Answer

ISO 9000 is a set of international quality standards that are adopted by companies to ensure that their products and services meet customer requirements and are of the highest quality.

Question 3

A multiple-period quality trend report is a chart or graph that tracks changes in quality.

Accepted Answer

A multiple-period quality trend report is a tool used to track and analyze changes in the quality of a product or process over time. It typically consists of a chart or graph that displays the trend in quality over multiple time periods, allowing organizations to identify areas of improvement and monitor the effectiveness of quality improvement initiatives.

Question 4

Cost information is important to managers, to help them improve managerial planning, control, and decision making.

Accepted Answer

Cost information provides managers with valuable insights into the financial situation of a company and can aid in making informed decisions about resource allocation, product pricing, and overall business strategy. With accurate cost information, managers can identify areas of inefficiency and take steps to improve processes and reduce costs, thereby increasing profitability and competitiveness.

Question 5

A quality product or service is one that meets or exceeds customer expectations.

Accepted Answer

A quality product or service is one that satisfies the needs and expectations of the customer. If it does not meet or exceed their expectations, then it could be considered low quality.

Question 6

Activity­based costing is used to calculate the quality cost per unit of a company's products.

Accepted Answer

Activity-based costing is a method used to assign costs to products or services based on the activities or tasks required to produce or deliver them. This method provides a more accurate calculation of the cost per unit, as it considers the specific activities and resources that are involved in producing each unit. Therefore, it is commonly used to calculate quality costs per unit.

Question 7

A quality cost report lists costs for each item within each of four categories.

Accepted Answer

A quality cost report typically lists costs for each item within each of four categories: prevention, appraisal, internal failure, and external failure.

Question 8

The two types of quality performance reports are interim standard and long-range reports.

Accepted Answer

The two types of quality performance reports are interim and final reports, not interim standard and long-range.

Question 9

If costs of quality were evaluated accurately, they would range in the 2 to 4 percent of sales range.

Accepted Answer

Costs of quality, when accurately evaluated, typically range much higher than 2 to 4 percent of sales. They can often be as high as 15 to 25 percent of sales, depending on the industry and the company's focus on quality management practices.

Question 10

Internal failure costs incurred by failure of products to conform to specifications are discovered after sales take place.

Accepted Answer

Internal failure costs are associated with defects found before the product reaches the customer, not after sales take place.

Question 11

Continuous auditing of suppliers assures the commitment to continuous improvement by ISO 9000 certified companies.

Accepted Answer

Continuous auditing of suppliers is a crucial component of ISO 9000 quality management systems. It ensures that suppliers are meeting the required quality standards and making continuous improvements to their processes. ISO 9000 certified companies are committed to implementing these practices and keeping their suppliers accountable through regular auditing.

Question 12

Cost-volume-profit analysis relies on analysis of fixed and variable costs.

Accepted Answer

Cost-volume-profit (CVP) analysis is a tool that helps businesses understand how changes in sales volume, price, and costs will affect profits. This analysis identifies the different types of costs, i.e., fixed and variable costs, and their impact on the profitability of the firm. Fixed costs do not change with the levels of production, while variable costs change proportionally with the production volume. Therefore, the CVP analysis relies on the analysis of fixed and variable costs to determine the level of sales needed to break even or achieve the desired level of profitability.

Question 13

Quality cost performance reports contain two essential elements: actual and expected outcomes.

Accepted Answer

Quality cost performance reports compare actual outcomes to the expected outcomes in order to assess the effectiveness of the quality control process.

Question 14

The decision making contexts related to quality cost information are strategic pricing and strategic analysis.

Accepted Answer

The answer of The decision making contexts related to quality...

Question 15

In a quality cost report, quality costs are expressed as a percentage of total defective units.

Accepted Answer

Quality costs are expressed as a percentage of total sales or production costs, not as a percentage of total defective units.

Question 16

The long-range quality performance report compares actual with final quality costs.

Accepted Answer

The long-range quality performance report compares actual with PLANNED quality costs, not final quality costs.

Question 17

Managers use interim quality standards to express quality goals on an interim basis.

Accepted Answer

Interim quality standards are used by managers to communicate quality goals for a specific period of time until permanent quality standards are established.

Question 18

The zero-defects model claims that it is cost beneficial to reduce nonconforming units to zero.

Accepted Answer

The zero-defects model emphasizes that achieving zero nonconforming units is cost-effective in the long run because it eliminates the costs associated with defects, such as returns, repairs, reworks, and customer dissatisfaction.

Question 19

Prevention costs are incurred to prevent poor quality in products or services being produced.

Accepted Answer

Prevention costs are incurred to prevent poor quality in products or services being produced. These costs include costs associated with planning and designing products, training employees, implementing quality control procedures, and maintaining equipment.

Question 20

Customers are concerned with product reliability, durability, fitness for use, and conformance to specifications.

Accepted Answer

Customers are indeed concerned with product reliability, durability, fitness for use, and conformance to specifications. These are all key factors that impact customer satisfaction and loyalty towards a product or brand.

Quiz 14: Quality and Environmental Cost Management

According to the robust view, a gain is experienced from varying a product target value.

ISO 9000 is a set of international quality standards which are adopted by companies.

A multiple-period quality trend report is a chart or graph that tracks changes in quality.

Cost information is important to managers, to help them improve managerial planning, control, and decision making.

A quality product or service is one that meets or exceeds customer expectations.

Activitybased costing is used to calculate the quality cost per unit of a company's products.

A quality cost report lists costs for each item within each of four categories.

The two types of quality performance reports are interim standard and long-range reports.

If costs of quality were evaluated accurately, they would range in the 2 to 4 percent of sales range.

Internal failure costs incurred by failure of products to conform to specifications are discovered after sales take place.

Continuous auditing of suppliers assures the commitment to continuous improvement by ISO 9000 certified companies.

Cost-volume-profit analysis relies on analysis of fixed and variable costs.

Quality cost performance reports contain two essential elements: actual and expected outcomes.

The decision making contexts related to quality cost information are strategic pricing and strategic analysis.

In a quality cost report, quality costs are expressed as a percentage of total defective units.

The long-range quality performance report compares actual with final quality costs.

Managers use interim quality standards to express quality goals on an interim basis.

The zero-defects model claims that it is cost beneficial to reduce nonconforming units to zero.

Prevention costs are incurred to prevent poor quality in products or services being produced.

Customers are concerned with product reliability, durability, fitness for use, and conformance to specifications.

Quiz 14: Quality and Environmental Cost Management

According to the robust view, a gain is experienced from varying a product target value.

ISO 9000 is a set of international quality standards which are adopted by companies.

A multiple-period quality trend report is a chart or graph that tracks changes in quality.

Cost information is important to managers, to help them improve managerial planning, control, and decision making.

A quality product or service is one that meets or exceeds customer expectations.

Activity­based costing is used to calculate the quality cost per unit of a company's products.

A quality cost report lists costs for each item within each of four categories.

The two types of quality performance reports are interim standard and long-range reports.

If costs of quality were evaluated accurately, they would range in the 2 to 4 percent of sales range.

Internal failure costs incurred by failure of products to conform to specifications are discovered after sales take place.

Continuous auditing of suppliers assures the commitment to continuous improvement by ISO 9000 certified companies.

Cost-volume-profit analysis relies on analysis of fixed and variable costs.

Quality cost performance reports contain two essential elements: actual and expected outcomes.

The decision making contexts related to quality cost information are strategic pricing and strategic analysis.

In a quality cost report, quality costs are expressed as a percentage of total defective units.

The long-range quality performance report compares actual with final quality costs.

Managers use interim quality standards to express quality goals on an interim basis.

The zero-defects model claims that it is cost beneficial to reduce nonconforming units to zero.

Prevention costs are incurred to prevent poor quality in products or services being produced.

Customers are concerned with product reliability, durability, fitness for use, and conformance to specifications.

Activitybased costing is used to calculate the quality cost per unit of a company's products.