Questions from Cost Management

Q: “Total perceived quality” (i.e., total customer

“Total perceived quality” (i.e., total customer satisfaction with a product or service) can be defined as the difference between a. “design specifications” and “customer expectations.” b. “customer ex...

Q: Which of the following is a distinguishing characteristic of using goalpost conformance

Which of the following is a distinguishing characteristic of using goalpost conformance for setting quality expectations? a. The use of Six Sigma performance standards b. The use of the DMAIC (define,...

Q: Which of the following is a distinguishing characteristic of using absolute quality

Which of the following is a distinguishing characteristic of using absolute quality conformance for setting quality expectations? a. The ability to incorporate Taguchi quality loss functions b. The us...

Q: A Taguchi quality loss function (QLF) a. is

A Taguchi quality loss function (QLF) a. is used to define the tolerance range in the goalpost quality approach to setting quality standards. b. predicts decreasing quality-related costs as deviations...

Q: Which of the following statements regarding cost of quality (COQ)

Which of the following statements regarding cost of quality (COQ) reporting is correct? a. Total COQ consists of conformance costs plus nonconformance costs. b. Total COQ consists of conformance costs...

Q: Which of the following costs is not properly characterized as a prevention

Which of the following costs is not properly characterized as a prevention cost under a COQ reporting system? a. Quality training costs b. Supplier assurance costs c. Testing and inspection costs d. E...

Q: Which of the following costs is not properly characterized as an external

Which of the following costs is not properly characterized as an external failure cost under a COQ reporting system? a. Sales returns and allowances b. Lost contribution due to increased demand on con...

Q: If the overhead rate is $10 per machine hour and there

If the overhead rate is $10 per machine hour and there are 20 labor hours, 16 machine hours, and two personnel on the job, how much overhead should be applied to the job?

Q: Which of the following costs is not a desirable characteristic of a

Which of the following costs is not a desirable characteristic of a COQ reporting system? a. Exclusion of opportunity costs in the COQ report b. Comparison of quality costs to some baseline amount for...

Q: Total customer-response time (CRT) can be defined as

Total customer-response time (CRT) can be defined as which of the following? (Hint: Refer to text Exhibit 14.14 and the accompanying discussion.) a. The difference between when a customer’s order is s...