Question 1

A professor,dissatisfied with a product he's purchased,bad mouths the product to his class,resulting in decreased market share (since the students believe everything he tells them).The manufacturer suffers:
A)an internal failure cost.
B)an external failure cost.
C)a prevention cost.
D)an appraisal cost.

Accepted Answer

The professor's negative feedback about the product to his class results in decreased market share, which is a type of external failure cost. These costs are incurred when a product fails to meet customer expectations and results in lost sales, decreased market share, and damage to the company's reputation.

Question 2

Which one of the following is part of prevention costs?
A)the costs of quality audits
B)the costs resulting from scrap
C)the costs of improving process design and product design
D)the costs of lawsuits from injury from use of the product

Accepted Answer

Prevention costs are costs incurred to prevent defects from occurring. Improving process design and product design are preventative measures to reduce the occurrence of defects, therefore they are part of prevention costs. Choice A, the costs of quality audits, are part of appraisal costs, which are costs incurred to identify defects. Choice B, the costs resulting from scrap, are part of internal failure costs as a result of a defective product. Choice D, the costs of lawsuits from injury from use of the product, are part of external failure costs resulting from a defective product.

Question 3

Which one of the following is considered to be an appraisal cost?
A)cost of quality audits
B)cost of supplier programs
C)cost of rework
D)cost of process design

Accepted Answer

The cost of quality audits is a type of appraisal cost, which is the cost incurred to evaluate, inspect, and test products or services to ensure they meet the required standards. Choice B is a type of prevention cost, which is the cost incurred to prevent defects from occurring in the first place. Choice C is a type of internal failure cost, which is the cost incurred when defects are detected before the product or service is delivered to the customer. Choice D is a type of prevention cost, which is the cost incurred to design processes that reduce the likelihood of defects occurring.

Question 4

The investment a company makes in training employees to perform their duties and redesigning products and processes to improve them would be categorized as prevention costs.

Accepted Answer

Prevention costs are expenses incurred to prevent defects in products or services, including investments in employee training and process improvement.

Question 5

A cost that is incurred if some aspect of a service must be performed again is called a(n):
A)yield loss.
B)prevention cost.
C)appraisal cost.
D)rework cost.

Accepted Answer

Rework cost is the cost incurred due to the need for redoing a service or aspect of it. Yield loss refers to the reduction in the amount of output due to defects or mistakes, prevention cost is the cost of preventing defects from occurring in the first place, and appraisal cost is the cost of evaluating and inspecting the service or product to ensure quality. Therefore, the best choice is D.

Question 6

Improving quality seems to be a strategic weapon in gaining market share.However,improving quality entails allocation of resources and effort.As greater effort is expended to stop defects before they occur,which one of the following costs increases?
A)prevention costs
B)appraisal costs
C)internal failure costs
D)external failure costs

Accepted Answer

Prevention costs are the costs incurred to prevent defects from occurring in the first place. As greater effort is expended to stop defects before they occur, more resources and effort will need to be allocated to prevention activities, which will increase prevention costs. Appraisal costs are the costs incurred to detect defects after they have occurred, while internal and external failure costs are incurred when defects are not prevented or detected in time.

Question 7

A prime example of an internal failure cost is the:
A)labor cost associated with inspecting every item produced.
B)labor cost associated with repairing an item returned under warranty.
C)material cost of a piece of stock metal that has had too large a hole drilled in it.
D)material cost of the paint applied to the case of a finished unit.

Accepted Answer

The answer of A prime example of an internal failure...

Question 8

From an ethical standpoint,it is acceptable for a hospital's cardiac surgery unit that is striving for zero complications to turn down high-risk patients.

Accepted Answer

It would not be ethical for a hospital to turn down high-risk patients simply to maintain a record of zero complications. The hospital has a responsibility to provide medical care to all patients regardless of risk level. Refusing to treat high-risk patients would be a violation of the principle of beneficence, or the obligation to act in the best interest of the patient. It may also be a violation of the principle of non-maleficence, or the obligation to do no harm, as high-risk patients may suffer harm if they do not receive necessary treatment. Therefore, it is not acceptable from an ethical standpoint for the hospital's cardiac surgery unit to turn down high-risk patients.

Question 9

Appraisal costs are associated with preventing defects before they happen.

Accepted Answer

Appraisal costs are associated with evaluating or inspecting materials, parts, and products to ensure they meet quality standards, not with preventing defects before they happen. Prevention costs are associated with preventing defects.

Question 10

When errors have been made while producing a product such that the item must be discarded,the resultant cost is called a(n):
A)warranty.
B)scrap cost.
C)rework cost.
D)external failure cost.

Accepted Answer

Scrap cost refers to the cost incurred when a product must be discarded due to production errors. The other options do not specifically relate to the cost of discarding a product.

Question 11

Which one of the following is a potential consequence of external failures?
A)longer lead times
B)less rework
C)more litigation costs
D)lower product costs

Accepted Answer

External failures refer to issues that occur after a product or service has been delivered to the customer, such as defective products or poor customer service. One potential consequence of external failures is an increase in litigation costs, as customers may sue the company for damages. Longer lead times and lower product costs are typically associated with internal failures, which occur before a product or service is delivered. Less rework is a desired outcome, not a consequence, of effective quality control measures.

Question 12

Increasing the quality level by better products and processes may:
A)allow a company to raise the price of the product.
B)move a company closer to a competitive priority of price.
C)reduce prevention costs.
D)ensure that the trade-off between prevention costs and other costs of poor quality is worthwhile.

Accepted Answer

If a company improves the quality of its products and processes, it can justify charging a higher price for its products. This is because consumers are willing to pay more for higher quality products.

Answer: C 
 Prevention costs are the costs associated with preventing defects or errors from occurring in the first place. By improving products and processes, a company can reduce its prevention costs.

Answer: D 
 When a company invests in improving the quality of its products and processes, it needs to ensure that the costs of doing so are worthwhile. This means that the benefits of reducing defects and errors need to outweigh the costs of prevention. When quality is increased, the trade-off between prevention costs and other costs of poor quality becomes more favorable.

Therefore, the best choices are A, C, and D.

Question 13

Which one of the following statements is TRUE?
A)Appraisal costs decrease as quality level decreases.
B)Appraisal costs increase as the variation of output increases.
C)Appraisal costs increase as the variation of output decreases.
D)Appraisal costs increase as quality level increases.

Accepted Answer

Appraisal costs are associated with measuring and monitoring activities to ensure quality. As the variation of output increases, more resources are needed to inspect and test products, leading to higher appraisal costs.

Question 14

When a process fails to satisfy a customer:
A)it is quite often the customer's fault.
B)it is considered a defect
C)it is time to reengineer the process.
D)it is usually half the customer's fault and half the company's fault.

Accepted Answer

When a process fails to satisfy a customer, it is considered a defect. It indicates that the process did not meet the customer's expectations, and there is an opportunity for improvement. While it is possible that the customer may have contributed to the issue, the primary focus should be on correcting the process to prevent similar defects in the future. Reengineering the process may be one solution, but it is not always necessary depending on the nature of the defect.

Question 15

Which of the following would be considered an appraisal cost of quality?
A)training workers to perform their jobs
B)purchasing better tools for workers to perform their jobs
C)repairing an item under the warranty
D)running a functional test on each item before it is boxed for shipment

Accepted Answer

Running a functional test on each item before it is boxed for shipment is an example of an appraisal cost of quality because it involves inspecting and testing the product to ensure it meets quality standards before it is released to the customer. Training workers and purchasing better tools are examples of prevention costs, while repairing an item under warranty is an example of a failure cost.

Question 16

Consumers consider five aspects when defining quality.Which one of the following is least likely to be one of these aspects?
A)value
B)fitness for use
C)psychological impressions
D)individual development

Accepted Answer

The four aspects of quality that consumers commonly consider are value, fitness for use, psychological impressions, and social responsibility. Individual development is not typically considered by consumers when defining quality.

Question 17

Since an employee's responsibility is to move production along,it is ethical to knowingly pass defective services or products to internal or external customers when capacity is tight.

Accepted Answer

It is not ethical to knowingly pass defective services or products to internal or external customers. This action can harm the reputation and trust of the company, which can have long-term negative effects. It is better to address the issue and find a solution before passing on the defective product or service.

Question 18

Which of the following would be considered a prevention cost of quality?
A)inspecting incoming raw materials
B)training workers to perform their jobs
C)issuing a recall of defective product before another customer is injured
D)performing a 24 hour burn-in on every item produced to make sure it works before it is shipped.

Accepted Answer

Training workers to perform their jobs is a prevention cost of quality as it helps to prevent defects and errors from occurring in the first place, thus reducing the likelihood of additional costs associated with appraisal, internal failure, or external failure. Inspecting incoming raw materials, performing a 24-hour burn-in on every item produced, and issuing a recall of defective product are all examples of appraisal, internal failure, or external failure costs.

Question 19

An example of an internal failure cost would be warranty cost.

Accepted Answer

Internal failure costs are costs associated with defects found before the product reaches the customer, such as scrap and rework, not costs incurred after the product has been delivered like warranty costs.

Question 20

Which one of the following is a consequence of internal failures?
A)increased customer service
B)increased inventory costs
C)increased productivity
D)decreased lead time

Accepted Answer

Internal failures can lead to increased inventory costs due to the need for reworking, repair, or replacement of faulty products or materials. The other options are not typically associated with internal failures.

Quiz 3: Quality and Performance

A professor,dissatisfied with a product he's purchased,bad mouths the product to his class,resulting in decreased market share (since the students believe everything he tells them) .The manufacturer suffers:

Which one of the following is part of prevention costs?

Which one of the following is considered to be an appraisal cost?

The investment a company makes in training employees to perform their duties and redesigning products and processes to improve them would be categorized as prevention costs.

A cost that is incurred if some aspect of a service must be performed again is called a(n) :

Improving quality seems to be a strategic weapon in gaining market share.However,improving quality entails allocation of resources and effort.As greater effort is expended to stop defects before they occur,which one of the following costs increases?

A prime example of an internal failure cost is the:

From an ethical standpoint,it is acceptable for a hospital's cardiac surgery unit that is striving for zero complications to turn down high-risk patients.

Appraisal costs are associated with preventing defects before they happen.

When errors have been made while producing a product such that the item must be discarded,the resultant cost is called a(n) :

Which one of the following is a potential consequence of external failures?

Increasing the quality level by better products and processes may:

Which one of the following statements is TRUE?

When a process fails to satisfy a customer:

Which of the following would be considered an appraisal cost of quality?

Consumers consider five aspects when defining quality.Which one of the following is least likely to be one of these aspects?

Since an employee's responsibility is to move production along,it is ethical to knowingly pass defective services or products to internal or external customers when capacity is tight.

Which of the following would be considered a prevention cost of quality?

An example of an internal failure cost would be warranty cost.

Which one of the following is a consequence of internal failures?