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EBK AUDITING AND ASSURANCE SERVICES
16th Edition
ISBN: 9780134067117
Author: Hogan
Publisher: VST
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Question
Chapter 26, Problem 18.3MCQ
To determine
Identify the option which helps in preventing from the breakdown and repairs of equipment.
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Students have asked these similar questions
Consider which of the above costs is relevant to the decision situation?
a. The cost of existing inventory, in a keep vs. disposal decision.
b. The cost of special electrical wiring, in an equipment acquisition decision.
c. The salary of a supervisor who will be transferred elsewhere in the organization, d. in a department-closure decision.
An example of a staff management function would be
A. determining that new equipment is required.
B. managing production.
C. preparing operating cost estimates for proposed new equipment.
D. ensuring that environmental standards are met.
E. being responsible for attaining a set level of plant income.
A number of activities that are part of a company's quality control system are listed below:
Required:
1. Classify the costs associated with each of these activities into one of the following categories: prevention cost, appraisal cost,
internal failure cost, or external failure cost.
Prevention Appraisal
Cost
Internal
Failure
External
Failure
Cost
Activities
Cost
Cost
a.
Product testing
b
Product recalls
C.
Rework labor and overhead
d.
Quality circles
e
Downtime caused by defects
f.
Cost of field servicing
g. Inspection of goods
Quality engineering
h.
i. Warranty repairs
j
Statistical process control
k.
Net cost of scrap
Depreciation of test equipment
m.
Returns and allowances arising from poor quality
n.
Disposal of production defects
O.
Technical support to suppliers
р.
Systems development
q.
Warranty replacements
r. Field testing at customer site
Quality training
S.
Chapter 26 Solutions
EBK AUDITING AND ASSURANCE SERVICES
Ch. 26 - Prob. 1RQCh. 26 - Prob. 2RQCh. 26 - Prob. 3RQCh. 26 - Prob. 4RQCh. 26 - Prob. 5RQCh. 26 - Prob. 6RQCh. 26 - Prob. 7RQCh. 26 - Prob. 8RQCh. 26 - Prob. 9RQCh. 26 - Prob. 10RQ
Ch. 26 - Prob. 11RQCh. 26 - Prob. 12RQCh. 26 - Prob. 13RQCh. 26 - Prob. 14RQCh. 26 - Prob. 15RQCh. 26 - Prob. 16.1MCQCh. 26 - Prob. 16.2MCQCh. 26 - Prob. 16.3MCQCh. 26 - Prob. 17.1MCQCh. 26 - Prob. 17.2MCQCh. 26 - Prob. 17.3MCQCh. 26 - Prob. 18.1MCQCh. 26 - Prob. 18.2MCQCh. 26 - Prob. 18.3MCQCh. 26 - Prob. 19.1MCQCh. 26 - Prob. 19.2MCQCh. 26 - Prob. 19.3MCQCh. 26 - Prob. 20DQPCh. 26 - Prob. 21DQPCh. 26 - Prob. 22DQPCh. 26 - Prob. 23DQPCh. 26 - Prob. 24DQPCh. 26 - Prob. 25DQP
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Which of the following is not a prevention cost? a. testing finished products b. design engineering c. operator training d. preventive maintenancearrow_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_forwardRector Corporation is examining its quality control program. Which of the following statements is/ are correct?I. Rework costs should be regarded as a cost of quality when the rework is caused by internal failure. II. Prevention costsare costs that are incurred to prevent the sale and production of defective units. III. Internal failure costs are costs of failureof machinery on the production line.1. I, II, and III are correct.2. II only is correct.3. I and III only are correct.4. I only is correct.arrow_forward
- Which of the following would be the most appropriate basis for allocating the costs of plant insurance that covers equip-ment theft and damage? a. Direct labor hours.b. Value of equipment.c. Machine hours.d. Square feet of plant space.arrow_forwardIdentify the material loss, which may be re-cycled for production process. Select one: a) Defectives b) Wastearrow_forwardWhich of the following is a prevention cost? a. Inspection of materials. b. Continuing supplier verification. c. Prototype inspection. d. Recalls.arrow_forward
- For the following descriptions state whether the cost is controllable or uncontrollable by responsibility center managers. A. property tax of an existing manufacturing facility B. research and development of a product C. advertising of a product D. insurance cost of the existing manufacturing facility E. design of a productarrow_forwardThe theory of constraints suggests that the improvement efforts should usually be focused on: a. Work centers that are not constraints b. The work center that is the constraint c. The work center with the highest total cost. d. The work center with the most obsolete equipment.arrow_forwardWhich of the following practices is incompatible with a just-in-time management system? A. reliance on contracts with suppliers to deliver raw materials when needed B. ordering large quantities of raw materials in order to obtain volume discounts C. pursuing frequent deliveries of defect-free materials from suppliers D. completing work in self-contained work cellsarrow_forward
- Identify the material loss, which may be re-cycled for production process. Select one: Defectives Waste damage Lossarrow_forwardClassify the following costs as typically direct (D) or indirect (I): Project staff Audit and legal Utilities Rent Raw materials Training on equipment Project supplies Labor Administrative staff Miscellaneous office supplies Quality assurance IT department Scheduled maintenance Shared software packagesarrow_forwardWhich of the following cost items should be classified as an external failure cost on a cost of quality repo A. Customer returns of defective products OB. Net cost of scrap OC. Supplies used in the quality inspection program OD. Technical support provided to suppliersarrow_forward
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Inspection and Quality control in Manufacturing. What is quality inspection?; Author: Educationleaves;https://www.youtube.com/watch?v=Ey4MqC7Kp7g;License: Standard youtube license