Quiz 17: Implementing Quality Concepts
Business
Q 1Q 1
Productivity is measured by the quantity of good output generated from a specific amount of input during a time period.
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True False
True
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True False
False
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True False
True
Q 4Q 4
Quality control places the primary responsibility for product or service quality on the provider.
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True False
Q 5Q 5
Grade refers to a product meeting the highest number of a customer's needs at the lowest possible cost.
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True False
Q 6Q 6
Grade refers to one of many quality levels that a product or service has relative to the inclusion or exclusion of certain characteristics to satisfy customer needs.
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True False
Q 7Q 7
Value refers to a product meeting the highest number of a customer's needs at the lowest possible cost.
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True False
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True False
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True False
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True False
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True False
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True False
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True False
Q 14Q 14
Total quality management requires that an organization analyze the costs and benefits of each of its customer segments.
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True False
Q 15Q 15
When implementing TQM,an organization should establish long-term relationships with preferred suppliers.
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True False
Q 16Q 16
When implementing TQM,an organization should establish long-term relationships with as many suppliers as possible.
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True False
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True False
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True False
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True False
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True False
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True False
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True False
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True False
Q 24Q 24
Pareto analysis is frequently used to aid management in deciding where to concentrate quality prevention cost dollars.
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True False
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True False
Q 26Q 26
Total quality management (TQM)requires the commitment of all individuals within an organization.
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True False
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True False
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True False
Q 29Q 29
The quantity of good output generated from a specific of output during a time period is referred to as ____________________.
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Q 30Q 30
The process of investigating,comparing,and evaluating a company's products or services against those of other companies is referred to as ____________________.
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Q 31Q 31
A process in which an end product or service is examined using reverse engineering is referred to as ___________________________________.
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Q 32Q 32
A benchmarking process that is non-industry specific and focuses on how companies compete is referred to as ___________________________________.
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Q 33Q 33
A benchmarking process that focuses on how best-in-class companies achieve their results is referred to as ___________________________________.
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Q 34Q 34
Costs that preclude product defects resulting from flaws in processing are referred to as ______________________________.
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Q 35Q 35
Costs of monitoring and compensating for mistakes not eliminated through prevention activities are referred to as ______________________________.
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Q 36Q 36
Costs incurred to correct defects in products prior to shipment are referred to as ________________________________________.
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Q 37Q 37
Costs incurred to correct defects in products after shipment are referred to as ________________________________________.
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Q 38Q 38
The two costs of compliance are ______________________________ and ______________________________.
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Q 39Q 39
The two costs of noncompliance are ___________________________________ and ___________________________________.
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Q 40Q 40
An all-inclusive definition of quality views it as the ability of products/services to
A)only meet internal design specifications.
B)meet the customer's stated or implied needs.
C)be produced using all value-added production activities.
D)be produced with no rework costs.
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Multiple Choice
Q 41Q 41
Which of the following is false as it relates to quality?
A)Quality is the total of all characteristics of a product or service that impacts on its ability to meet the needs of a specific person.
B)Quality must always be viewed from the user's perspective.
C)Quality is never concerned with what the user thinks,feels,or deems important.
D)The definition of quality has evolved through time and is more currently comprehensive than in the past.
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Multiple Choice
Q 42Q 42
Productivity is measured by the
A)total quantity of output generated from a limited amount of input during a time period.
B)quantity of good output generated from a specific amount of input during a time period.
C)quantity of good output generated from the quantity of good input used during a time period.
D)total quantity of input used to generate total quantity of output for a time perioD.
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Multiple Choice
Q 43Q 43
Which of the following can be used to indicate factors that slow down or cause unnecessary work in a process?
A)activity analysis
B)total quality management
C)cost of quality
D)all of the above
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Multiple Choice
Q 44Q 44
Which of the following are undesirable from a consumer perspective but are frequently needed?
A)value-neutral activities
B)value-added activities
C)non-value-added activities
D)none of the above
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Multiple Choice
Q 45Q 45
Which of the following would typically be viewed as non-value-added activities?
A)yes yes yes no
B)no no no yes
C)no yes no yes
D)yes yes no yes
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Multiple Choice
Q 46Q 46
____ places the primary responsibility for quality on the maker or producer.
A)Pareto analysis
B)Quality control
C)Benchmarking
D)Activity analysis
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Multiple Choice
Q 47Q 47
All attempts to reduce variability and defects in products reflect the implementation of
A)activity analysis.
B)statistical process control.
C)quality control.
D)control charts.
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Multiple Choice
Q 48Q 48
Control charts are appropriate devices in
A)total quality control.
B)statistical process control.
C)total quality management.
D)all of the above.
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Multiple Choice
Q 49Q 49
A control chart graphs
A)actual process results relative to a range of acceptable variation.
B)expected process results relative to upper and lower control limits.
C)actual process results relative to value-added and non-value-added activities.
D)the cost of process malfunctions relative to the cost of reducing process variations.
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Multiple Choice
Q 50Q 50
The addition or removal of product or service characteristics to satisfy additional needs,especially price,reflect the ____ of a product or service.
A)value
B)grade
C)quality
D)durability
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Multiple Choice
Q 51Q 51
Value reflects the ability of a product to
A)provide the best quality at any price.
B)have all possible product and service characteristics.
C)meet the majority of a customer's needs at the lowest possible price.
D)have the longest technical or service life and the best warranty.
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Multiple Choice
Q 52Q 52
Comparing the way a "best-in-class" company performs a specific activity (such as distribution)is called
A)process benchmarking.
B)results benchmarking.
C)total quality management benchmarking.
D)SPC benchmarking.
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Multiple Choice
Q 53Q 53
Benchmarking allows a company to
A)identify its strengths and weaknesses.
B)imitate those ideas that are readily transferable.
C)improve on methods in use by others.
D)all of the above.
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Multiple Choice
Q 54Q 54
Benchmarking against direct competitors creates the risk of
A)creating products or services with identical specifications.
B)becoming stagnant relative to process improvements.
C)being taken over by the competitors to prevent a loss of ideas.
D)all of the above.
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Multiple Choice
Q 55Q 55
Reverse engineering is used in
A)statistical process control.
B)process benchmarking.
C)results benchmarking.
D)price fixing.
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Multiple Choice
Q 56Q 56
Benchmarking against noncompetitors is extremely important in
A)process benchmarking.
B)results benchmarking.
C)reverse engineering.
D)all of the above.
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Multiple Choice
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Multiple Choice
Q 58Q 58
Benchmarking does which of the following activities relative to a "best-in-class" (BIC)company?
A)yes yes yes
B)yes no no
C)no no yes
D)yes no yes
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Multiple Choice
Q 59Q 59
Which of the following is not a step in benchmarking procedures?
A)analyze the "positive gap"
B)engage in continuous improvement
C)analyze the "negative gap"
D)identify "best-in-class" companies
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Multiple Choice
Q 60Q 60
Which of the following is not a critical element in a total quality management system?
A)employee involvement
B)activity-based costing
C)continuous improvement
D)problem prevention emphasis
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Multiple Choice
Q 61Q 61
A total quality system should be designed to promote a reorientation of thinking from an emphasis on
A)internal quality improvements to an emphasis on external benchmarking.
B)the planning process to an emphasis on the performance evaluation process.
C)inspection to an emphasis on prevention.
D)process benchmarking to an emphasis on results benchmarking.
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Multiple Choice
Q 62Q 62
Which of the following is the first element of knowledge needed by a company wanting to pursue total quality management?
A)what the company's customers want
B)who the company's customers are
C)how the company's processes are designed
D)what the components of the company's product are
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Multiple Choice
Q 63Q 63
Total quality management is inseparable from the concept of
A)ISO certification.
B)centralized organizational structure.
C)continuous improvement.
D)the product life cycle.
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Multiple Choice
Q 64Q 64
A company will not achieve world-class status unless a quality focus
A)allows that company to achieve one or more major quality awards.
B)becomes an integral part of the organization's culture.
C)emphasizes the elimination of all quality costs for compliance and noncompliance.
D)has been mandated by management for workers to pursue.
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Multiple Choice
Q 65Q 65
Which of the following are categories judged for the Baldrige Award?
A)no yes no yes yes
B)yes yes yes yes yes
C)yes yes no yes no
D)no no no no no
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Multiple Choice
Q 66Q 66
The most visible embodiment of total quality management in the United States is
A)being awarded the Deming Prize.
B)achieving ISO 9000 certification.
C)meeting industry standards.
D)receiving the Baldrige AwarD.
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Multiple Choice
Q 67Q 67
Which of the following statements is true?
A)The more customers a company has,the better off the company is.
B)A company should spare no expense to provide customer satisfaction.
C)Most customers make quality determinations by comparing a product or service to a comparable product.
D)Cost-benefit analysis can help identify customers that cost more than they are worth to the company.
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Multiple Choice
Q 68Q 68
The four categories of product quality costs are
A)external failure,internal failure,prevention,and carrying.
B)external failure,internal failure,prevention,and appraisal.
C)external failure,internal failure,training,and appraisal.
D)warranty,product liability,training,and appraisal.
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Multiple Choice
Q 69Q 69
The number of product defects discovered by consumers is what kind of performance indicator?
A)yes no no yes
B)no yes no yes
C)no yes yes no
D)yes no no yes
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Multiple Choice
Q 70Q 70
Money spent on employee training is a
A)prevention cost.
B)appraisal cost.
C)empowerment cost.
D)Pareto cost.
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Multiple Choice
Q 71Q 71
Production quality is affected by
A)worker productivity.
B)the amount of failure costs incurred.
C)worker skill level.
D)just-in-time suppliers.
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Multiple Choice
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Multiple Choice
Q 73Q 73
Product quality includes all of the following except
A)appeal.
B)performance.
C)durability.
D)price.
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Multiple Choice
Q 74Q 74
Recalls are fairly common events for automobile manufacturers.The costs of recalling and repairing a car create
A)yes yes no
B)yes yes yes
C)no yes no
D)yes no yes
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Multiple Choice
Q 75Q 75
An appraisal cost is created by
A)installing automated technology.
B)reworking products.
C)verifying procedures.
D)rescheduling and setup.
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Multiple Choice
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Multiple Choice
Q 77Q 77
Management can decide where to concentrate its quality prevention dollars using
A)statistical process control charts.
B)just-in-time inventory systems.
C)a feedback loop.
D)Pareto analysis.
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Multiple Choice
Q 78Q 78
Historically,the cost of quality has been
A)included in account balances for items such as Work in Process Inventory and marketing expenses.
B)detailed in various "cost of quality" account balances on the Income Statement.
C)immaterial because no accounts were developed to detail these amounts.
D)generally spent in the prevention rather than the appraisal category.
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Multiple Choice
Q 79Q 79
A significant cost of quality that is not recorded in the accounting records is the
A)failure cost for a customer complaint center.
B)cost of reworking products to bring them up to specification.
C)opportunity costs of forgone future sales.
D)appraisal cost for product equipment.
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Multiple Choice
Q 80Q 80
A cost of quality report compares current period quality costs in specified categories to
A)last year's quality costs.
B)current period budgeted quality costs.
C)total quality costs for the period.
D)both a and b.
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Multiple Choice
Q 81Q 81
Which of the following is not one of the three objectives of a quality program?
A)Product quality should be consistent to always meet the purchaser's need(s).
B)A quality program should give management confidence that the quality is and will be at a constant level.
C)A quality program should give customers confidence that the intended quality will be achieved in products.
D)Product quality should always vary because customers change their wants and needs over time.
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Multiple Choice
Q 82Q 82
The ISO 9000 series refers to
A)international guidelines for quality standards.
B)provisions regarding benchmarking activities in the European Union.
C)guidelines for appropriate expenditures on the various categories of quality costs.
D)all of the above.
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Multiple Choice
Q 83Q 83
The ISO 9000 standards
A)indicate which companies' products are better than those of competitors.
B)allow management to decide how to meet the standards for quality assurance.
C)include specific directives about product design,material procurement,and environmental responsibilities.
D)compose a program of quality assurance under which companies are registered by the International Organizational for Standardization.
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Multiple Choice
Q 84Q 84
Registration under ISO 9000 is
A)required for all companies doing business internationally.
B)required for all European companies doing business in Europe.
C)not required for U.S.companies unless they use European suppliers.
D)required for all companies producing regulated products to be sold in the European Union.
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Multiple Choice
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Multiple Choice
Q 86Q 86
StatPro Corporation
StatPro Corporation is a manufacturer of a versatile statistical calculator.The following information is a summary of defective and returned units for the previous year.
Refer to StatPro Corporation.The profit lost by selling defective units not reworked is
A)$25,000.
B)$15,000.
C)$18,750.
D)$3,750.
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Multiple Choice
Q 87Q 87
StatPro Corporation
StatPro Corporation is a manufacturer of a versatile statistical calculator.The following information is a summary of defective and returned units for the previous year.
Refer to StatPro Corporation.The total rework cost is
A)$7,500.
B)$15,000.
C)$2,500.
D)$3,750.
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Multiple Choice
Q 88Q 88
StatPro Corporation
StatPro Corporation is a manufacturer of a versatile statistical calculator.The following information is a summary of defective and returned units for the previous year.
Refer to StatPro Corporation.The cost of processing customer returns is
A)$9,000.
B)$2,500.
C)$22,500.
D)$2,250.
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Multiple Choice
Q 89Q 89
StatPro Corporation
StatPro Corporation is a manufacturer of a versatile statistical calculator.The following information is a summary of defective and returned units for the previous year.
Refer to StatPro Corporation.The total failure cost is
A)$15,000.
B)$13,500.
C)$11,250.
D)$8,250.
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Multiple Choice
Q 90Q 90
StatPro Corporation
StatPro Corporation is a manufacturer of a versatile statistical calculator.The following information is a summary of defective and returned units for the previous year.
Refer to StatPro Corporation.The total quality cost is
A)$15,000.
B)$15,750.
C)$28,500.
D)$11,250.
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Multiple Choice
Q 91Q 91
StatPro Corporation
StatPro Corporation is a manufacturer of a versatile statistical calculator.The following information is a summary of defective and returned units for the previous year.
Refer to StatPro Corporation.The profit lost by selling defective units to Pittman Company totals $1,440.The total rework cost for 700 units is $28,000.The difference between the profit earned on a good unit and a defective unit is $12.How many total defective units did StatPro Corporation produce?
A)120
B)740
C)736
D)820
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Multiple Choice
Q 92Q 92
Porter Company's cost of compliance is $58,000.Appraisal cost is $21,000 and failure cost is $32,000.The company's total quality cost is
A)$53,000.
B)$79,000.
C)$90,000.
D)$111,000.
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Multiple Choice
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Q 95Q 95
Discuss increased competition and improved problem solving skills as they relate to benchmarking.
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Q 101Q 101
What is the relationship between the incurrence of the various types of quality costs and the quantity of output that meets specification?
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Q 102Q 102
Mobile Corporation
Mobile Corporation is a manufacturer of electronic blood pressure monitors for
home use.The following is a summary of quality costs for the first year of operations.
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Q 103Q 103
Mobile Corporation
Mobile Corporation is a manufacturer of electronic blood pressure monitors for
home use.The following is a summary of quality costs for the first year of operations.
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Q 104Q 104
Mobile Corporation
Mobile Corporation is a manufacturer of electronic blood pressure monitors for
home use.The following is a summary of quality costs for the first year of operations.
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Q 105Q 105
Mobile Corporation
Mobile Corporation is a manufacturer of electronic blood pressure monitors for
home use.The following is a summary of quality costs for the first year of operations.
Refer to Mobile Corporation.What is the total failure cost?
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Q 106Q 106
Mobile Corporation
Mobile Corporation is a manufacturer of electronic blood pressure monitors for
home use.The following is a summary of quality costs for the first year of operations.
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Q 107Q 107
Outdoor Oasis,Inc.
Outdoor Oasis,Inc.has just finished its first year of business.Outdoor Oasis,Inc.makes decorative outdoor furniture.The firm manufactured 2,500 pieces of furniture during the year: 2,400 were sold at garden centers for $456,000;100 pieces were defective and could only be sold as scrap metal (25 pounds each and can be sold for $2.50 per pound).No defective units could be reworked.During the year the following costs were incurred:
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Q 108Q 108
Outdoor Oasis,Inc.
Outdoor Oasis,Inc.has just finished its first year of business.Outdoor Oasis,Inc.makes decorative outdoor furniture.The firm manufactured 2,500 pieces of furniture during the year: 2,400 were sold at garden centers for $456,000;100 pieces were defective and could only be sold as scrap metal (25 pounds each and can be sold for $2.50 per pound).No defective units could be reworked.During the year the following costs were incurred:
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