A company engages in a number of activities as part of its quality control system: a. Which type of costs are incurred in an effort to keep poor quality of conformance from occurring? O External failure costs O Prevention costs and appraisal costs O Internal failure costs b. Which type of costs are incurred because poor quality of conformance has occurred? O Appraisal costs O Internal and external fallure costs O Prevention costs

A company engages in a number of activities as part of its quality control system: a. Which type of costs are incurred in an effort to keep poor quality of conformance from occurring? O External failure costs O Prevention costs and appraisal costs O Internal failure costs b. Which type of costs are incurred because poor quality of conformance has occurred? O Appraisal costs O Internal and external fallure costs O Prevention costs

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter14: Quality And Environmental Cost Management

Section: Chapter Questions

Problem 28E: Environmental costs are those costs incurred because poor environmental quality exists or may exist....

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Which of the following quality costs is an internal failure cost? a. Inspection of reworked units b. Lost sales because of products failing to meet specifications c. Replacing a defective product d. Training production line workers in new quality procedures
Environmental costs are those costs incurred because poor environmental quality exists or may exist. As with quality costs, environmental costs can be placed into one of four categories. One of these categories is external failure costs. Which of the following describes one of the two external failure cost categories? a. Costs incurred to detect pollution caused by the firm b. Costs incurred to prevent pollution from contaminating the environment after pollution has been produced c. Pollution costs caused by the firm but paid for by society d. Costs incurred to prevent the production of pollution
Which of the following is a prevention cost? a. Inspection of materials. b. Continuing supplier verification. c. Prototype inspection. d. Recalls.
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Suppose that clerical erroreither Thaynes or the suppliersis the common root cause of the non-value-added activities. For each non-value-added activity, ask a series of why questions that identify clerical error as the activitys root cause.
Spending on testing a product before shipment to customers is what type of quality cost? External failure cost Prevention cost Appraisal cost None of the above
Which would be classified as an external failure cost on a quality cost report?a. Reentering data because of keying errorsb. Customer returns due to quality problemsc. Test and inspection of in-process goodsd. Rework labor and overhead.
On a Cost of Quality report, which of the following cost items should be classified as an internal failure cost? Question 18 options: Net cost of scrap Customer returns of defective products Training for quality control employees Patent cost for a new product
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State the quality cost as per the concept of total quality costs: 1. Reporting & recording of defects 2. Storing and disposing waste 3. Procedure verification
Which of the following statements are true? Multiple select question. Measuring and reporting quality costs does not solve quality problems. The impact of customer ill will is generally not found on quality control reports. As managers become more experienced in balancing prevention and appraisal activities, the need for quality cost reports often increases. Decreases in quality costs generally occur as soon as improvement programs are implemented.