Question 1

Which of the following would be classified as an external failure cost on a quality cost report?

Accepted Answer

A)  Net cost of scrap.
B)  Product recalls.
C)  Rework labor and overhead.
D)  Downtime caused by quality problems.E) B) and D)
F) A) and D)

Question 2

Which of the following would be classified as an internal failure cost on a quality cost report?

Accepted Answer

A)  Supplies used in testing and inspection.
B)  Final product testing and inspection.
C)  Net cost of scrap.
D)  Depreciation of test equipment.E) B) and D)
F) None of the above

Question 3

Which of the following would be classified as a prevention cost on a quality cost report?

Accepted Answer

A)  Lost sales arising from a reputation for poor quality.
B)  Final product testing and inspection.
C)  Net cost of spoilage.
D)  Quality data gathering,analysis,and reporting.E) B) and D)
F) A) and D)

Question 4

Which of the following would be classified as an appraisal cost on a quality cost report?

Accepted Answer

A)  Liability arising from defective products.
B)  Supervision of testing and inspection activities.
C)  Technical support provided to suppliers.
D)  Debugging software errors.E) A) and C)
F) None of the above

Question 5

External failure costs result when a defective product is shipped to a customer.

Accepted Answer

A) True 
 B)False

Question 6

Eacker Company's quality cost report is to be based on the following data: 
-What would be the total internal failure cost appearing on the quality cost report?

Accepted Answer

A)  $156,000
B)  $134,000
C)  $143,000
D)  $158,000E) None of the above
F) B) and C)

Question 7

Eade Company's quality cost report is to be based on the following data: 
-What would be the total appraisal cost appearing on the quality cost report?

Accepted Answer

A)  $70,000
B)  $119,000
C)  $110,000
D)  $97,000E) All of the above
F) B) and D)

Question 8

Internal failure costs result when a defective product is used within the company.

Accepted Answer

A) True 
 B)False

Question 9

An example of an internal failure cost is:

Accepted Answer

A)  maintenance.
B)  inspection.
C)  rework.
D)  product recalls.E) A) and D)
F) A) and C)

Question 10

Eade Company's quality cost report is to be based on the following data: 
-What would be the total external failure cost appearing on the quality cost report?

Accepted Answer

A)  $328,000
B)  $54,000
C)  $95,000
D)  $175,000E) B) and C)
F) All of the above

Question 11

Eade Company's quality cost report is to be based on the following data: 
-What would be the total internal failure cost appearing on the quality cost report?

Accepted Answer

A)  $54,000
B)  $75,000
C)  $80,000
D)  $121,000E) B) and C)
F) None of the above

Question 12

Faast Company's quality cost report is to be based on the following data: 
-What would be the total prevention cost appearing on the quality cost report?

Accepted Answer

A)  $139,000
B)  $69,000
C)  $178,000
D)  $148,000E) B) and C)
F) A) and C)

Question 13

Gadola Company's quality cost report is to be based on the following data:  Required:
Prepare a Quality Cost Report in good form with separate sections for prevention costs,appraisal costs,internal failure costs,and external failure costs.

Accepted Answer

The answer of Gadola Company's quality cost report is to...

Question 14

Which of the following would be classified as a prevention cost on a quality cost report?

Accepted Answer

A)  Systems development.
B)  Disposal of defective products.
C)  Returns and allowances arising from quality problems.
D)  Supervision of testing and inspection activities.E) C) and D)
F) All of the above

Question 15

Quality costs:

Accepted Answer

A)  relate only to the manufacturing process.
B)  should be focused on appraisal activities.
C)  are minimized by having a team of well-trained quality control inspectors.
D)  cut across departmental lines and often are not accumulated and reported to management.E) A) and B)
F) A) and C)

Question 16

Which of the following would be classified as an internal failure cost on a quality cost report?

Accepted Answer

A)  Cost of field servicing and handling complaints.
B)  Rework labor and overhead.
C)  Supervision of testing and inspection activities.
D)  Final product testing and inspection.E) All of the above
F) A) and D)

Question 17

Faas Company's quality cost report is to be based on the following data: 
-What would be the total prevention cost appearing on the quality cost report?

Accepted Answer

A)  $118,000
B)  $106,000
C)  $108,000
D)  $87,000E) B) and C)
F) None of the above

Question 18

Prevention costs and appraisal costs are incurred in an effort to keep poor quality of conformance from occurring.

Accepted Answer

A) True 
 B)False

Question 19

Godunov Company's quality cost report is to be based on the following data:    Required:
Prepare a Quality Cost Report in good form with separate sections for prevention costs,appraisal costs,internal failure costs,and external failure costs.

Accepted Answer

The answer of Godunov Company's quality cost report is to...

Question 20

Faast Company's quality cost report is to be based on the following data: 
-What would be the total internal failure cost appearing on the quality cost report?

Accepted Answer

A)  $211,000
B)  $99,000
C)  $102,000
D)  $158,000E) A) and C)
F) A) and B)

Exam 16: Appendix B: Cost of Quality

Eade Company's quality cost report is to be based on the following data: -What would be the total appraisal cost appearing on the quality cost report?

Correct AnswerverifiedShow Answer

External failure costs result when a defective product is shipped to a customer.

Correct AnswerverifiedShow Answer

Which of the following would be classified as an internal failure cost on a quality cost report?

Correct AnswerverifiedShow Answer

Faast Company's quality cost report is to be based on the following data: -What would be the total internal failure cost appearing on the quality cost report?

Correct AnswerverifiedShow Answer

Which of the following would be classified as an appraisal cost on a quality cost report?

Correct AnswerverifiedShow Answer

Eade Company's quality cost report is to be based on the following data: -What would be the total external failure cost appearing on the quality cost report?

Correct AnswerverifiedShow Answer

Internal failure costs result when a defective product is used within the company.

Correct AnswerverifiedShow Answer

Quality costs:

Correct AnswerverifiedShow Answer

Godunov Company's quality cost report is to be based on the following data: Required: Prepare a Quality Cost Report in good form with separate sections for prevention costs,appraisal costs,internal failure costs,and external failure costs.

Correct AnswerverifiedShow Answer

Prevention costs and appraisal costs are incurred in an effort to keep poor quality of conformance from occurring.

Correct AnswerverifiedShow Answer

Which of the following would be classified as a prevention cost on a quality cost report?

Correct AnswerverifiedShow Answer

Faas Company's quality cost report is to be based on the following data: -What would be the total prevention cost appearing on the quality cost report?

Correct AnswerverifiedShow Answer

Which of the following would be classified as an external failure cost on a quality cost report?

Correct AnswerverifiedShow Answer

Eacker Company's quality cost report is to be based on the following data: -What would be the total internal failure cost appearing on the quality cost report?

Correct AnswerverifiedShow Answer

An example of an internal failure cost is:

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Eade Company's quality cost report is to be based on the following data: -What would be the total internal failure cost appearing on the quality cost report?

Correct AnswerverifiedShow Answer

Gadola Company's quality cost report is to be based on the following data: Required: Prepare a Quality Cost Report in good form with separate sections for prevention costs,appraisal costs,internal failure costs,and external failure costs.

Correct AnswerverifiedShow Answer

Which of the following would be classified as an internal failure cost on a quality cost report?

Correct AnswerverifiedShow Answer

Which of the following would be classified as a prevention cost on a quality cost report?

Correct AnswerverifiedShow Answer

Faast Company's quality cost report is to be based on the following data: -What would be the total prevention cost appearing on the quality cost report?

Correct AnswerverifiedShow Answer

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