Question 1

What clearly separates the vital few from the trivial many and provides direction for selecting projects for improvement?

Accepted Answer

Pareto analysis is a technique used to identify the vital few factors that contribute to a problem or situation. It helps to prioritize the improvement projects by separating them into two categories - the important ones (vital few) and the less significant ones (trivial many). Using Pareto analysis, organizations can focus their resources on the essential projects that will have the most significant impact on improving their business processes.

Question 2

Measuring expected revenue gains against expected costs associated with quality efforts is known as:

Accepted Answer

Measuring expected revenue gains against expected costs associated with quality efforts is known as return on quality.

Question 3

How much of the current earnings to pay out as dividends rather than to retain and reinvest this is called:

Accepted Answer

The amount of current earnings to pay out as dividends rather than to retain and reinvest is called dividend policy decision. This decision depends on various factors like the company's financial position, growth prospects, and shareholders' expectations. Therefore, it is the best choice among the given options.

Question 4

Shiba quality model focus on which level of quality?

Accepted Answer

The answer of Shiba quality model focus on which level...

Question 5

According to Juran's prescriptions, quality trilogy consists of:

Accepted Answer

The answer of According to Juran's prescriptions, quality trilogy consists...

Question 6

What takes the opportunities and turns them into actions which, in turn, become values?

Accepted Answer

The answer of What takes the opportunities and turns them...

Question 7

Measuring your performance against that of best-in-class companies, determining how the best-in-class achieve those performance levels, and using the information as a basis for your own company's targets, strategies and implementation is called:

Accepted Answer

This is a clear description of benchmarking, which involves comparing your company's performance to that of leading companies in your industry or sector, identifying best practices and strategies that contribute to their success, and using that information to set your own performance targets, develop strategies, and improve processes. Flowcharting is a process for visualizing and analyzing workflows, while reengineering and redesign both refer to radical, often organizational changes to improve efficiency or effectiveness.

Question 8

Leading companies identify important business processes throughout the supply chain that affect customer satisfaction, these fall into which of the following category?

Accepted Answer

Leading companies identify important business processes throughout the supply chain that affect customer satisfaction, including product design processes, support processes, and supplier and partnering processes. Therefore, option D, i.e., "All of the above" is the correct answer.

Question 9

When one or more people hire another person to perform a service and then delegate decision-making authority to that agent, then they are said to be in:

Accepted Answer

An agency relationship is formed when one person (the principal) hires another person (the agent) to act on their behalf and delegates decision-making authority to that agent. The agent is expected to act in the best interest of the principal and make decisions that serve their goals. This type of relationship is common in business and legal settings, where a company may hire a lawyer or accountant to act as their agent in certain matters.

Question 10

The firm's stock price is dependent on which of the following factors?

Accepted Answer

The firm's stock price is dependent on all of these factors. Projected earnings per share is an important determinant of the stock price as it reflects the expected profitability of the company. The riskiness of the projected earnings is also important as investors are willing to pay a premium for companies with predictable and stable earnings. Dividend policy also affects the stock price as investors may value a company that pays out dividends more than one that does not. Overall, all of these factors play a role in determining the firm's stock price.

Question 11

Which of the following is NOT the category of internal failure costs?

Accepted Answer

Tests and inspections costs are considered prevention costs as they are incurred to prevent defects or problems from occurring in the first place. Scrap and rework costs, costs of corrective action, and downgrading costs are all examples of internal failure costs as they are incurred when a defect or problem has been identified within the organization.

Question 12

What translate into maximizing the value of the firm as measured by the price of the firm's common stock?

Accepted Answer

Stockholder wealth maximization is the concept that translates into maximizing the value of the firm as measured by the price of the firm's common stock.

Question 13

An approach for mistake-proofing processes using automatic devices or methods to avoid simple human or machine error is called:

Accepted Answer

The approach described in this question is called poka-yoke, which is a Japanese term for mistake-proofing processes using automatic devices or methods to prevent errors by humans or machines. Choice A, B, and D are not relevant or correct.

Question 14

In which quality model, whole philosophy is summarized in three steps to quality, which include quality leadership, modern quality technology, and organizational commitments to continuous training and motivation of the entire workforce?

Accepted Answer

The Feigenbaum Quality Model, also known as Total Quality Control (TQC), is summarized in three steps to quality, which include quality leadership, modern quality technology, and organizational commitments to continuous training and motivation of the entire workforce.

Question 15

Costs that are associated with efforts to ensure conformance to requirements, generally through measurement and analysis of data to detect non-conformances are called:

Accepted Answer

The description mentions the efforts to ensure conformance, which is associated with appraisal costs. Prevention costs are associated with preventing non-conformances, internal costs are associated with the internal operations of the organization, and training costs are associated with training employees.

Question 16

The Australian Business Awards are administered by the Australian Quality Awards Foundation with which level?

Accepted Answer

The Australian Business Awards are administered by the Australian Quality Awards Foundation at all the mentioned levels: Business Improvement level, Award Gold level, and Australian Business Excellent prize.

Question 17

A Pareto diagram is a histogram of the data from the smallest frequency to the largest.

Accepted Answer

A Pareto diagram is a type of bar chart where the bars are ordered by frequency from largest to smallest, not smallest to largest.

Question 18

The formula to calculate the return on quality is:

Accepted Answer

The return on quality (ROQ) is calculated by taking the net present value (NPV) of benefits divided by the NPV of costs and then subtracting 1.00.

Question 19

Which of the following s NOT the category of quality costs?

Accepted Answer

Training cost is not a category of quality costs. The four categories of quality costs are Prevention cost, Appraisal cost, Internal cost, and External cost.

Question 20

According to _______________, quality is innate excellence and can be recognized only through experience.

Accepted Answer

None of the given options seem to relate directly to the concept of quality. However, "transcendent view" implies a level of excellence that goes beyond the ordinary and can only be perceived through a deeper understanding or experience. This aligns with the idea that quality is innate and can only be recognized through experience. Therefore, B is the best choice.

Exam 1: Certified Business Manager