The cost of statistical quality control in a product quality cost system is categorized as a(n):
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1 .The manufacturer of a high priced car emphasizes the prestige, performance, and safety of the vehicle. The strategy pursued by the manufacturer can be best characterized as:
A Differentiation focused on a narrow range (niche) of buyers. B Cost leadership focused on a narrow range (niche) of buyers. C Differentiation focused on a broad range of buyers. D Cost leadership focused on a broad range of buyers.
2 .Falser Co. increases all of its input factors by 100 percent, resulting in increased output of 90 percent. Which of the following statements identifies the effect of this change?
A Marginal returns rise. B Marginal costs decrease. C Returns to scale decrease. D Returns to scale increase.
3 .The benefits of a just-in-time system for raw materials usually include:
A Increase in the number of suppliers, thereby ensuring competitive bidding. B Maximization of the standard delivery quantity, thereby lessening the paperwork for each delivery. C Elimination of nonvalue adding operations. D Decrease in the number of deliveries required to maintain production.
4 .All of the following would generally be included in a cost of quality report, except:
A Design engineering. B Supplier evaluations. C Lost contribution margin. D Warranty claims.
5 .Product-quality-related costs are part of a total quality control program. A product-quality-related cost incurred in detecting individual products that do not conform to specifications is an example of a(n):
A Internal failure cost. B Appraisal cost. C Prevention cost. D External failure cost.
7 .Which of the following represents an organizational commitment to customer-focused performance that emphasizes both quality and continuous improvement?
A Lean Management. B Total Quality Management. C Activity-based Costing. D Just-in-time.
8 .Which of the following management philosophies does not focus on quality?
A Total Quality Management. B Absolute conformance. C Gap Analysis. D Lean.
9 .Hi Tech Corporation is a California based company that has contracted with a separate company in India to handle its customer service call center. Hi Tech Corporation's practice is most accurately described using the term:
A Offshore operations. B Shared services. C Globalization. D Outsourcing.
10 .A manufacturer that wants to improve its staging process compares its procedures against the check-in process for a major airline. Which of the following tools is the manufacturer using?
A Economic value-added. B Benchmarking. C Total quality management. D Statistical process control.
