Question

In: Operations Management

Which of the following is an appraisal cost? a.Training program for production line workers b.Inspecting parts...

Which of the following is an appraisal cost?

a.Training program for production line workers

b.Inspecting parts as they come off the assembly line

c.Reworking a product that failed inspection

Solutions

Expert Solution

b.Inspecting parts as they come off the assembly line

This is the cost used to detect defective inventory before it is being shipped to the customers finally. Hence, inspecting parts is an example of appraisal cost


Related Solutions

1) Which of the following would be considered an appraisal cost of quality? A) training workers...
1) Which of the following would be considered an appraisal cost of quality? A) training workers to perform their jobs B) purchasing better tools for workers to perform their jobs C) repairing an item under warranty D) running a functional test on each item before it is boxed for shipment 2) A U.S. car company knowingly released cars for sale with defective fuel lines which caused the cars to spontaneously explode, resulting in multiple deaths. After the cause of failure...
Which of the following would be classified as an appraisal cost on a quality cost report?...
Which of the following would be classified as an appraisal cost on a quality cost report? Multiple Choice Test and inspection of in-process goods. Technical support provided to suppliers. Debugging software errors. Audits of the effectiveness of the quality system.
1. Which of the following would be considered an appraisal cost of quality?
 1. Which of the following would be considered an appraisal cost of quality? A) Training workers to perform their jobs B) Redesigning products C) Salaries of inspectors D) Repairing an item under the warranty E) None of the above 2. All new preseription medicines can be marketed in the U.S. only after getting approval from the FDA after: A) Successfully completing phase I clinical trials B) Successfully completing phase III clinical trials C) Advertised to the public D) Advertised to prescribers 3. For a patent to benefit from legal protection it must...
Which of the following is an example of appraisal cost: A. Scrap B. Complaint adjustment C....
Which of the following is an example of appraisal cost: A. Scrap B. Complaint adjustment C. Product/process design D. Product inspection and test It's a multiple choice question
Parts are inspected on a production line for a defect. It is known that 5% of...
Parts are inspected on a production line for a defect. It is known that 5% of the pieces have this defect. (this applies to 5 parts of the problem) a. If an inspector examines 12 parts, what is the probability of finding more than 2 defective parts? b. What is the expected number of defective parts in 12-piece sample? C. In another area, parts are inspected until 5 defective parts are found, then the machine is stopped to reset the...
Parts are inspected on a production line for a defect. It is known that 5% of...
Parts are inspected on a production line for a defect. It is known that 5% of the pieces have this defect. (this applies to 5 parts of the problem) to. If an inspector examines 12 parts, what is the probability of finding more than 2 defective parts? (10 pts) b. What is the expected number of defective parts in 12-piece sample? (10 pts) c. In another area, parts are inspected until 5 defective parts are found, then the machine is...
Makari Motura parts manufacturers produce various motor parts. The cost structure of a part which production...
Makari Motura parts manufacturers produce various motor parts. The cost structure of a part which production per annum is 90,000 units is as follows:                                                                                    Sh.            Materials (per unit)                                   540            Labour (25% fixed)                                     360            Expenses:            Variable (Per unit)                                     180             Fixed                                                           270            Total                                                            1,350                                                         The purchasing manager explores that a supplier is ready to supply the part at Sh. 1080. Required: Explain whether the part should be purchased and production stopped or not. Show...
Nobel Tech Inc. is building a new production line. The cost of the production line is...
Nobel Tech Inc. is building a new production line. The cost of the production line is $3 million in the current year and $2 million in the following year. The production line is expected to bring in cash inflow of $1.6 million in year 2, and $2 million each year from year 3 to year 7. The company uses a cost of capital of 10% on all the projects. The IRR of the project is closest to ___________. Group of...
Nobel Tech Inc. is building a new production line. The cost of the production line is...
Nobel Tech Inc. is building a new production line. The cost of the production line is $3 million in the current year and $2 million in the following year. The production line is expected to bring in cash inflows of $1.6 million in year 2, and $2 million each year from year 3 to year 7. The company uses a cost of capital of 10% on all the projects. The discounted payback period of this project is ____________. Group of...
Two workers (A and B) are on a production line. They can either exert effort E...
Two workers (A and B) are on a production line. They can either exert effort E or shirk S. It costs each worker 1 > £c > 0 to provide effort and shirking costs them nothing. The workers together produce one unit of output. If the unit passes the quality control test it can be sold for £2 (shared equally between the workers) and it has value zero if it fails the test. The probability of passing the test, p,...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT