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Management Accounting

Willie Seal, University of Essex, UK
Ray Garrison, Brigham Young University, Provo, Utah, USA
Eric Noreen, INSEAD, France

Quality and business processes: measurement and management

Self-test Questions


1	One of the following is not a cost of poor quality (Learning Objective 1 Ch 19)
		A)	Defects to be rectified
		B)	Customers who don’t return
		C)	More expensive materials
		D)	Customers who tell others of their bad experience


2	One of the following is not a cost of good quality (Learning Objective 2 Ch 19)
		A)	Conformance cost
		B)	Non- appraisal costs
		C)	More expensive materials
		D)	External failure costs


3	One of the following is not a feature of TQM (Learning Objective 2 Ch 19)
		A)	Studying world class organisations
		B)	Plan do-check-check-leave cycle
		C)	Focus on serving customers
		D)	Systematic problem solving using teams


4	One of the following is not a feature of benchmarking (Learning Objective 4 Ch 19)
		A)	Studying organisations that are the best.
		B)	A close relationship with TQM
		C)	A close relationship with ABM
		D)	Setting targets that are easily attainable


5	One of the following is not a feature of business process re-engineering (Learning Objective 4 Ch 19)
		A)	It focuses on non-value added activities
		B)	It is more radical than TQM
		C)	It is less likely than TQM to be imposed from above
		D)	It involves a complete re-design


6	One of the following is not a feature adds no value to a product and might therefore be investigated under ABM (Learning Objective 5 Ch 19)
		A)	Customer order processing
		B)	Assembling the product
		C)	Putting the gearbox in car
		D)	Researching into product improvement


7	One of the following is not a criticism of ABM (Learning Objective 6 Ch 19)
		A)	Staff are unlikely to associate with an accessible controllable cost driver
		B)	Attempts to count staff functions threatens to lose their essence
		C)	Team work and customer relations may suffer as they are hard to measure
		D)	The performance of activities may take over from the original purpose

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