11) Which of the following cost items should be classified as an external failure cost on a cost of quality report?
A) Net cost of scrap
B) Customer returns of defective products
C) Technical support provided to suppliers
D) Supplies used in the quality inspection program
12) If a company were to increase its appraisal costs by inspecting more units as the units are completed, the company's internal failure costs:
A) would usually increase.
B) would usually decrease.
C) would usually remain the same.
D) could not be predicted.
13) If a company were to increase its appraisal costs by inspecting more units as the units are completed, the company's external failure costs:
A) would usually increase.
B) would usually decrease.
C) would usually remain the same.
D) could not be predicted.
14) The cost of testing incoming raw materials from a supplier would be classified as a(n) :
A) prevention cost.
B) appraisal cost.
C) internal failure cost.
D) external failure cost.
15) The cost of maintaining testing equipment would be classified as a(n) :
A) prevention cost.
B) appraisal cost.
C) internal failure cost.
D) external failure cost.
16) The cost of downtime caused by quality problems with the raw materials would be classified as a(n):
A) prevention cost.
B) appraisal cost.
C) internal failure cost.
D) external failure cost.
17) The cost of fixing defective units found during the quality inspections would be classified as a(n):
A) prevention cost.
B) appraisal cost.
C) internal failure cost.
D) external failure cost.
18) The cost of training quality control supervisors would be classified as a(n):
A) prevention cost.
B) appraisal cost.
C) internal failure cost.
D) external failure cost.
19) Which of the following statements regarding total quality management is FALSE?
A) TQM increases time spent on rework and warranty work.
B) TQM is a formal effort to improve quality throughout an organization's value chain.
C) TQM extends horizontally across business functions in the value chain.
D) TQM emphasizes educating, training, and cross training employees to increase and broaden their skills.
20) Managers who practice total quality management:
A) invest more resources in inspecting and repairing products once they are produced.
B) invest more resources at the front end of the value chain in research and development and design to produce a superior product.
C) practice both A and B.
D) practice neither A nor B.