101.From the above schedule of activity costs, determine the appraisal costs.
a. $50,000
b. $23,000
c. $73,000
d. $104,000
102.From the above schedule of activity costs, determine the prevention costs.
a. $30,000
b. $74,000
c. $76,000
d. $104,000
103.Which of the following is
nota prevention cost?
a.preventive maintenance
b.operator training
c.design engineering
d.testing finished products
104.Which of the following is
notan external failure cost?
a.warranty work
b.processing returned merchandise
c.rework
d.correcting invoice errors
105.Which of the following statements best describes the relationship among the costs of quality?
a.Spending more on prevention and appraisal costs will reduce the total overall costs of quality.
b.Spending more on prevention and appraisal costs will increase the total overall costs of quality.
c.Adequate spending on prevention and appraisal costs will eliminate all internal and external failure costs.
d.The amount spent on prevention and appraisal costs has no impact on the amount spent on internal andexternal failure costs.
106.Which of the following is a value-added activity?
a.scrap processing
b.rework
c.preventive maintenance
d.warranty work