Question

In: Accounting

SINGLE best answer 1)Increasing the quality level by better products and process may : a)Allow a...

SINGLE best answer

1)Increasing the quality level by better products and process may :

a)Allow a company to raise the price of the product

b)Reduce prevention cost

c)Ensure that the trade off between prevention cost and other cost of poor quality is worthwhile

d)Move a company closer to a competitive priority of price

2)Which one of the following is considered to be an appraisal cost ?

a)Cost of quality audit

b)Cost of rework

c)Cost of supplier programs

d)Cost of process design

3)Which of the following statement is true

a)Appraisal cost increase as the variation of output decrease

b)Appraisal cost decrease as quality level decrease

c)Appraisal cost increase as quality level increase

d)Appraisal cost increase as variation of out put increase

4)When error have been made while producing a product such that the item must be discarded the resultant cost is called

a)External failure cost

b)Scrap cost

c)Warranty

d)Rework cost

5)A cost that is incurred if some aspect of a service must be performed again is called

a)Prevention cost

b)Rework cost

c)Appraisal cost

d)Yield cost

6)Which one of the following is a part of preventon cost

a)The cost of improving process design and product design

b)The cost of quality audit

c)Cost resulting from scrap

d)The cost of lawsuits from injury from use of product

7)Which one of the following is a potential consequences of external failure

a)Longer lead time

b)Less rework

c)Lower product costs

d)More litigation cost

8)Which one of the following statement is a key feature of both TQM and six sigma

a)Quality is primarily the responsibility of top management

b)Quality is primarily the responsibility of employee in organization

c)Quality is primarily the responsibility of production department

d)Quality is primarily the responsibility of quality control department

9)If a product initially fail to live up to customer expectation , which dimension of quality might salvage the sale and the company reputation ?

a)Support

b)Value

c)Psychological impression

d)Fitness for use

10) When considering the plan –do-study-act cycle for problem solving instructing other employee in the use of new process occur in the ………………. Step .

a) Plan

b) Do

c)Study

d)Act

11) When considering the plan –do-study-act cycle for problem solving , evaluating how closely a project result corresponding to the initial goals set for the work is part of the ………………. Step .

a) Plan

b)Do

c) Study

d) Act

12) When considering the plan –do-study-act cycle for problem solving, quantitative goals are set for process improvement in the ………….step .

a) Plan

b) Do

c) Study

d) Act

13) Which of these elements is not part of a deming wheel ?

a) Plan

b) Design

c) Study

d) Act

14 )Which step of six sigma DMAIC procedure monitors the process to make sure high performance levels are maintained ?

a) Control

b) Define

c) Analyze

d_Improve

e_ Measure

15) Which step of six sigma DMAIC procedure involves identifying data sources and preparing a data collection ?

a) Measure

b) Control

c) Define

d) Improve

e)Analyze

16)Which of the following would be a common cause of variation

a) A defective raw material

b)A machine in need of repair

c) An untrained worker

d) Random sources

17 ) In statistical process control , ………………… are used to detect defect and determine if process has deviated from design specification ?

a) Control chart

b)Flow charts

c)Cause and effect diagram

d) Process capability chart

18) Which of the following statement about quality control is true

a) Sampling inspection is used when the cost of passing a defective unit is high relative to the cost of inspection

b) Complete inspection is used when inspection cost is high

c) Measurment by attributes is a simple yes or no decision

d) Measurement by variable is often used when the quality specification are complex

19) When should complete inspection be used

a) When inspection tasks are monotonus

b) When quality is a competitive priority

c) When the cost of product failure is high relative to the inspection cost

d) When inspection test are destructive

20 ) Regarding control chart , a type I error refer to concluding that the process is

a) Incapable when it is capable

b) Capable when it is not capable

c) In control when it is not in control

d) Out of control when it is in control

21 ) The UCL and LCL for an X – chart are 25 and 15 respectively . the central line is 20 , and the process variability is considered to be in statistical control . the result of the next six sample means are 18, 23,17,21,24, 16 . what should you do ?

a) Nothing , the process is in control

b)Explore the assignable causes because there is trend

c) Explore the assignable causes because the second , fourth , fifth sample are above the mean

d) Explore the assignable causes because there is a run

22) The just – in – time (JIT) system is a

a) Integrated system of managing resources , information, decision process to eliminate waste .

b) Materials management system for removing all inventories

c) Management system of oeople and procedures to fulfill all delivery deadline

d) Production system of small-lot manufacturing to reduce work-in-process inventory

23) Which of the following statement about process choice is true

a) Automobile and appliance are example of products created using continues flow process

b) A batch process typicaly has a standard sequence of operations through the facility

c) continues flow process are very capital intensive

d) a custom cake operation is an example of batch process

24) Which of the following statement about process management is best

a) The traditional relationship between capital intensity and resources flexibility is that if one is high , so is the other

b) Creating a more capital- intensive process tend to reduce fixed cost and raise the variable unit cost

c) Economies of scope mean that a process should be devoted to a single product or service to achive high volume

d) When customization must be high , equipment should be general purpose , and employees need to perform a broader rang of duties

25 ) A manufacture that produce standard products in large volume is likely to be using

a) Make-to-stock strategy

b) Assemble –to- order strategy

c) Make-to-order

d) Engineer –to-order strategy

26) The principle of postponement is employed by producer using

a) Make-to-order strategy

b) Assemble-to-order

c) Make-to-stock

d) Engineer- to- order strategy

27) A 100% learning curve that

a) Learning is taking place at the best possible level

b) A 100% reduction in direct labor time take place each time the production is doubled

c) No learning is taking place

d) Learning is taking place for all products and worker

e) None of the above

28) A process chart activity that change, creates,is

a) Inspection

b) Delay

c) Transportation

d) Operation

29) A process chart Activity that check something but dose not change is

a) Transportation

b) Inspection

c) Operation

d) Delay

30) One fundamental different between process chart and flow chart

a) The process chart includes the supply chart while flow chart stay within an organization

b) The process chart focus on customer and the provider interaction with the customer ,while the flow chart dose not deal directly with customer

c)The process chart is more likely a table , while the flow chart is schematic diagram

d) The process chart adds a time dimension to the horizontal axis , while the flow chart is notr time oriented

e) None of these is true , because the process chart and flow chart Are the same thing .

Solutions

Expert Solution

1 a. allow a company to raise the price of the product.

If a company increase the quality of the product then demand of the would increase due to the superiority of the product, which allows the company to raise the price of the product.

2 a. Cost of quality audits

Company sometime pay costs as part of the quality control process to ensure that their products and services meet customer expectations and regulatory requirements, so quality audit confirms that the product of the company has the standard to meet the customers' expectations that is why the cost of the quality audit should be considered an appraisal cost.

3 c. Appraisal costs increase as the variation of output decreases.

Sometimes Company's management agreed to pay more appraisal cost so that variation in their output has to be at low level.

4 scrap cost.

When errors have been made while producing a product such that the item must be discarded then the cost incurred in the production of that product would be considered as scrap cost.


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