All of the following would generally be included in a cost of quality report, except:
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1 .In the long run, a firm may experience increasing returns due to:
A Law of diminishing returns. B Comparative advantage. C Economies of scale. D The principle of substitution.
2 .An increase in the demand and the supply fora product will cause which of the following? I. The equilibrium quantity to increase. II. The equilibrium quantity to remain unchanged. III. The equilibrium price to remain unchanged. IV. The equilibrium quantity to decrease.
A I and III only. B II and III only. C II only. D I only.
3 .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.
4 .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.
5 .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.
7 .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.
8 .The cost of statistical quality control in a product quality cost system is categorized as a(n):
A Prevention cost. B Internal failure cost. C Appraisal cost. D Training cost.
9 .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.
10 .Which of the following management philosophies does not focus on quality?
A Total Quality Management. B Absolute conformance. C Gap Analysis. D Lean.
