Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN: 9781337115773
Author: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher: Cengage Learning
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Question
Chapter 13, Problem 11MCQ
To determine
Identify the correct description of internal failure costs.
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The cost of lost future sales after a customer finds a defect in a product is which type of quality cost?
Prevention cost
Appraisal cost
Internal failure cost
External failure cost
All of the following are internal failure cost except:
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Downtime caused by quality problems
Debugging software errors
Disposal of defective products
Liability arising from defective products
Rework labor and overhead
Identify the type of quality cost as per total quality cost concept:
A.Lost profit from lost sales from bad review
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B.Unplanned replacement
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C.Customer support
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D.Reprocessing waste
Chapter 13 Solutions
Managerial Accounting: The Cornerstone of Business Decision-Making
Ch. 13 - Prob. 1DQCh. 13 - Prob. 2DQCh. 13 - Why should the incremental cost of a risk response...Ch. 13 - Prob. 4DQCh. 13 - Explain how performance measurement can help...Ch. 13 - Identify and discuss the four kinds of quality...Ch. 13 - Discuss the benefits of quality cost reports that...Ch. 13 - Prob. 8DQCh. 13 - Prob. 9DQCh. 13 - When will the average unit cost be used for value...
Ch. 13 - How do international issues affect the role of the...Ch. 13 - What it a foreign trade zone, and what advantages...Ch. 13 - Prob. 13DQCh. 13 - Prob. 14DQCh. 13 - Prob. 15DQCh. 13 - A fire insurance policy on a manufacturing plant...Ch. 13 - Prob. 2MCQCh. 13 - Prob. 3MCQCh. 13 - Which of the following risk response items would...Ch. 13 - Beginning with strategy, which of the following...Ch. 13 - In which areas of an organizations value chain can...Ch. 13 - Prob. 7MCQCh. 13 - Which of the following items (correctly describes...Ch. 13 - Which of the following is a prevention cost? a....Ch. 13 - Prob. 10MCQCh. 13 - Prob. 11MCQCh. 13 - Prob. 12MCQCh. 13 - Prob. 13MCQCh. 13 - A manufacturing cell within a value stream has...Ch. 13 - Prob. 15MCQCh. 13 - Prob. 16MCQCh. 13 - Prob. 17MCQCh. 13 - Prob. 18MCQCh. 13 - Prob. 19MCQCh. 13 - Prob. 20BEACh. 13 - Quality Cost Report Whitley Company had total...Ch. 13 - Andresen Company had the following quality costs...Ch. 13 - Norris Company implemented a quality improvement...Ch. 13 - Mabbut Company has the following departmental...Ch. 13 - During the week of May 10, Hyrum Manufacturing...Ch. 13 - Prob. 26BEACh. 13 - Prob. 27BEBCh. 13 - Quality Cost Report Loring Company had total sales...Ch. 13 - Cassara, Inc., had the following quality costs for...Ch. 13 - Pintura Company implemented a quality improvement...Ch. 13 - Gumbrecht Company has the following departmental...Ch. 13 - During the week of August 21, Parley Manufacturing...Ch. 13 - Prob. 33BEBCh. 13 - Prob. 34ECh. 13 - Prob. 35ECh. 13 - Crazy Fan Guard Company provides security services...Ch. 13 - Jacks Apps Company researches, develops, and sells...Ch. 13 - Prob. 38ECh. 13 - Prob. 39ECh. 13 - Classify the following quality costs as prevention...Ch. 13 - Bradshaw Company reported sales of 5,000,000 in...Ch. 13 - The controller of Emery, Inc. has computed quality...Ch. 13 - Erba Inc. has the following departmental layout...Ch. 13 - A value stream has three activities and two...Ch. 13 - A Box Scorecard was prepared for a value stream:...Ch. 13 - Match each term in Column A with its related...Ch. 13 - Match each term in Column A with its related...Ch. 13 - Prob. 48ECh. 13 - Refer to Exercise 13-48. Suppose that Kamber is...Ch. 13 - Prob. 50ECh. 13 - Prob. 51PCh. 13 - Prob. 52PCh. 13 - Dorsey Scott MU Company manufactures and bottles a...Ch. 13 - Danna Wise, president of Tidwell Company, recently...Ch. 13 - Prob. 55PCh. 13 - In 20X1, Don Blackburn, president of Price...Ch. 13 - Brasher Company is transitioning to a lean...Ch. 13 - Merkley Company, a manufacturer of machine parts,...Ch. 13 - Paladin Company manufactures plain paper fax...Ch. 13 - Custom Shutters. Inc., manufactures plantation...Ch. 13 - Prob. 61PCh. 13 - Corporate sustainability reports vary greatly...Ch. 13 - Luna Company is a printing company and a...Ch. 13 - Lindell Manufacturing embarked on an ambitious...Ch. 13 - Paterson Company, a U.S.-based company,...
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Similar questions
- 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 proceduresarrow_forwardSuppose 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.arrow_forwardWhich of the following is a prevention cost? a. Inspection of materials. b. Continuing supplier verification. c. Prototype inspection. d. Recalls.arrow_forward
- 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 pollutionarrow_forwardWhich of the following would be a hidden quality cost? a. Inspecting and testing prototypes b. Repairing a computer still under warranty c. Stopping work to correct process malfunction (discovered using statistical process control procedures) d. Lost market share due to poor product performancearrow_forwardWhy does a company use a standard costing system? A. to identify variances from actual cost that assist them in maintaining profits B. to identify nonperformers in the workplace C. to identify what vendors are unreliable D. to identify defective materialsarrow_forward
- Which of the following cost includes determining how much to order, cost of invoices, clerical labor cost, costs of processing orders, temporary storage, inspection and return of poor quality products? a. Sunk Cost b. Ordering Cost c. Depreciation d. Carrying Costarrow_forwardExternal failure costs include all of the following costs except those related to: a. Lost sales and lost customer. b.Warranty obligations c. Product liability suits d. Product field testing.arrow_forwardOn 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 productarrow_forward
- Identify the following activities as per their respective categories under quality costs: 1.Lost profit from lost sales from bad review  2.Unplanned replacement  3.Correction and customer supportarrow_forwardThe cost of maintaining records of Information is an example of cost. Internal failure costa Extemal failure costs Appraisal costs None of themarrow_forwardWhich of the following is NOT a problem associated with standard cost accounting? a. Standard costing motivates management to produce large batches of products and build inventory. b. Applying standard costing leads to product cost distortions in a lean environment. c. Standard costing data are associated with excessive time lags that reduce its usefulness. d. The financial orientation of standard costing may promote bad decisions. e. All of the above are problems with standard costing.arrow_forward
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