Site MapHelpFeedbackChapter 16 Quiz 3
Chapter 16 Quiz 3
(See related pages)

1
In life cycle costing, nearly all of the product’s costs are committed during which stage(s)?
A)Product planning and concept design.
B)Product planning and concept design and product design and development.
C)Production.
D)Production and distribution and customer (logistical) support.
2
Which of the following adds customer value?
A)Setting up machinery.
B)Reprocessing a sales order.
C)Waiting for machinery to be set up.
D)Processing a sales order.
3
A company has five days of raw materials inventory on hand to avoid stock-outs. The carrying costs of the inventory average $1000 per day. The value-added costs would be:
A)$0
B)$5000
C)$100
D)$1000
4
An example of an external failure cost that is not easily found in an organisation’s accounting system is:
A)inspecting finished goods
B)quality improvement plans
C)lost contribution margin from current and future sales
D)scrap and reworking
5
Total quality management (TQM):
A)is organisation-wide
B)is customer-driven
C)involves empowerment
D)is all of the given answers
6
High levels of prevention costs should result in:
A)low levels of internal failure costs
B)high levels of internal failure costs and high levels of external failure costs
C)high levels of appraisal costs and high levels of internal failure costs
D)low levels of internal failure costs, low levels of external failure costs and possibly low levels of appraisal costs
7
The two concepts that need to be considered in meeting customers’ needs and expectations are:
A)quality of manufacture and quality of design
B)quality of design and quality of conformance
C)quality of manufacture and quality of performance
D)quality of performance and quality of conformance
8
In Kaplan and Norton’s balanced scorecard, quality measures would be included in the:
A)quality perspective and financial perspective
B)customer perspective and internal business perspective
C)internal business perspective
D)learning and growth perspective
9
The labour, materials and manufacturing overhead costs incurred to rework a defective product are:
A)appraisal costs
B)internal failure costs
C)external failure costs
D)prevention costs
10
Non-value added activities include:
A)expediting orders
B)moving raw materials
C)welding defects
D)all of the given answers





To learn more about the book this website supports, please visit its Information Center.
(c)2009 McGraw-Hill Australia
Any use is subject to the Terms of Use and Privacy Notice.
McGraw-Hill Australia is one of the many fine businesses of The McGraw-Hill Companies.


Management AccountingOnline Learning Center

Home > Chapter 16 > Quiz 16.3