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Flashcards in B6-1 Deck (39):
1

Quality programs that demand compliance with the most rigorous standards apply the concept of:

a.

Goalpost conformance.

b.

Nonconforming costs.

c.

Absolute conformance.

d.

Conforming costs.

Choice "c" is correct. Absolute conformance is the most rigorous standard of quality because it represents a perfect, or ideal, level of compliance.

Choice "a" is incorrect. Goalpost conformance assumes a range of acceptable results. Because it represents achievement of compliance within an established range of tolerable error, goalpost conformance is considered less rigorous than absolute conformance.

Choice "d" is incorrect. Conforming costs are those preventative and appraisal costs invested to detect and prevent errors and do not represent quality standards.

Choice "b" is incorrect. Nonconforming costs are those internal and external failures associated with correcting quality errors associated with non-compliance and do not represent quality standards.

2

Companies that adopt just-in-time purchasing systems often experience:

a.

Less need for linkage with a vendor's computerized order entry system.

b.

A reduction in the number of suppliers.

c.

A greater need for inspection of goods as the goods arrive.

d.

Fewer deliveries from suppliers.

Choice "b" is correct. Just-in-time purchasing systems usually results in a reduction in the number of suppliers. Because a company that adopts J-I-T is very dependent on supplier performance, usually fewer suppliers are used and a very close working relationship is developed with existing suppliers.

Choice "d" is incorrect. Just-in-time requires more deliveries from suppliers.

Choice "c" is incorrect. Usually there is more reliance on quality control by the supplier. Finding defective goods as they arrive is too late; a stock-out could cause production to shut down.

Choice "a" is incorrect. There is much more need for linkage with the vendor's order entry system with J-I-T because the company is dependent on timely deliveries from the vendo

3

Which of the following is not an external failure cost?

a.

Tooling changes.

b.

Warranty costs.

c.

Liability claims.

d.

Lost customers.

 

Choice "a" is correct. Tooling changes is an example of an internal failure cost.

Choices "d", "b", and "c" are incorrect. Lost customers, warranty costs, and liability claims are examples of external failure costs.

4

Which changes in costs are most conducive to switching from a traditional inventory ordering system to a just-in-time ordering system?

~Cost per purchase order
~Inventory unit carrying costs
a.

Decreasing

Increasing

b.

Increasing

Decreasing

c.

Increasing

Increasing

d.

Decreasing

Decreasing

Choice "a" is correct. A just-in-time system is used to lower inventory levels and results in more purchase orders of fewer units each. If carrying costs are increasing, JIT would be beneficial. Costs per purchase order that are decreasing would also be conducive to JIT.

Changes in costs related to adoption of JIT represent a sophisticated version of an old theme in accounting: What happens to fixed costs as volume either increases or decreases?

Carrying costs should decrease in total; however, they will do so only as a result of ordering more frequently and maintaining fewer items in stock. Ordering more frequently will spread the costs of the purchasing department over more orders, thereby decreasing the cost per PO. Maintaining fewer items in inventory or holding items for a shorter period of time will actually increase the inventory unit carrying costs.

Choices "c", "d", and "b" are incorrect based on the above explanation.

5

Which of the following is an example of prevention costs?

a.

Tooling changes.

b.

Lost customers.

c.

Testing.

d.

Redesign of processes.

 

Choice "d" is correct. Redesign of processes is an example of prevention costs.

Choice "b" is incorrect. Lost customers are an example of external failure cost.

Choice "c" is incorrect. Testing is an example of appraisal costs.

Choice "a" is incorrect. Tooling changes is an example of internal failure cost.

6

All of the following would generally be included in a cost of quality report, except:

a.

Supplier evaluations.

b.

Warranty claims.

c.

Design engineering.

d.

Lost contribution margin.

Choice "d" is correct. Lost contribution margin (an opportunity cost) would generally not be included in a cost of quality report.

Choices "b", "c", and "a" are incorrect. Included in a cost of quality report would be:

b.

Warranty claims (an external failure cost).

c.

Design engineering (a prevention cost).

a.

Supplier evaluations (a prevention cost).

7

Rework costs should be regarded as a cost of quality in a manufacturing company's quality control program when they are:

I.

Caused by the customer.

II.

Caused by internal failure.

a.

Neither I nor II.

b.

I only.

c.

Both I and II.

d.

II only.

Choice "d" is correct. Rework cost is a cost of quality caused by internal failure. Cost of quality includes conformance costs (the costs of prevention and appraisal activities before product shipment) and nonconformance costs (the costs of internal and external failures that require either return of the product or rework of the product).

Choice "b" is incorrect. Rework caused by a customer error is not a cost of quality.

Choices "c" and "a" are incorrect. Rework caused by internal failure is a cost of quality, but rework caused by a customer is not a cost of quality.

8

The cost of scrap, rework, and tooling changes in a product quality cost system are categorized as a(n):

a.

Training cost.

b.

Internal failure cost.

c.

External failure cost.

d.

Prevention cost.

Choice "b" is correct. Cost of scrap, rework, and tooling changes are a result of internal failure.

Choice "c" is incorrect. Tooling changes may occur as a result of an external failure, but scrap and rework costs will rarely result.

Choice "a" is incorrect. Training costs are a part of prevention.

Choice "d" is incorrect. Prevention aims to minimize or eliminate failures, which may result in scrap, rework and tooling costs.

9

Which of the following costs are inversely related to each other?

a.

Employee training costs and inspection expenses.

b.

Preventative maintenance costs and rework costs.

c.

Warranty costs and liability claims.

d.

Inspection expenses and redesign of product expenses.

 

Choice "b" is correct. Preventative maintenance costs are conforming costs, which are inversely related to nonconforming costs such as rework costs.

Choice "a" is incorrect. Both employee training costs and inspection expenses are conforming costs. They are not inversely related.

Choice "c" is incorrect. Both warranty costs and liability claims are nonconforming costs. They are not inversely related.

Choice "d" is incorrect. Both Inspection expenses and redesign of product expenses are conforming costs. They are not inversely related.

10

Which of the following techniques effectively measures improvements in product quality as a result of internal failure costs?

a.

Tracking the number of products reworked.

b.

Tracking warranty expenses over time.

c.

Inspection of in-process goods.

d.

Recording the number of products returned over time.

 

Choice "a" is correct. Measures of internal failure costs, a subset of nonconformance costs, include tracking the number of products reworked. Rework of products assumes errors are caught and corrected before delivery. Reduction of rework is an indication of improved efficiency and product quality.

Choice "c" is incorrect. Inspection of in-process goods is an appraisal cost, not an internal failure cost. It is a subset of conformance costs.

Choice "d" is incorrect. Product returns create nonconformance costs, but these are external failure costs, not internal failure costs.

Choice "b" is incorrect. Although warranty expense is a nonconformance cost, it is an external failure cost, not an internal failure cost.

11

Product-quality-related costs are part of a total quality control program. A product-quality-related cost incurred in detecting individual products that do not conform to specifications is an example of a(n):

a.

External failure cost.

b.

Appraisal cost.

c.

Prevention cost.

d.

Internal failure cost.

 

Choice "b" is correct. Appraisal costs would detect individual products that do not conform to specifications. Examples of appraisal costs include:

Statistical quality checks

Inspections

Testing

Maintenance of lab

Choice "c" is incorrect. Prevention costs would prevent defective products.

Choice "d" is incorrect. Internal failure costs are the costs of fixing defective products, not detecting them.

Choice "a" is incorrect. External failure costs result when defective goods are not detected and are sold to a customer.

12

Which of the following uses analysis of production processes to ensure that resource uses stay within target costs?

a.

Value Chain Analysis.

b.

Activity-based Costing.

c.

Kaizen.

d.

Just-in-time.

Choice "c" is correct. Kaizen, or continuous improvement, occurs at the manufacturing stage where the ongoing search for cost reductions takes the form of analysis of production processes to ensure that resource uses stay within target costs.

Choice "b" is incorrect. Activity-based costing focuses on costs for each activity in a process, but does not strive to stay within a targeted cost.

Choice "a" is incorrect. Value chain analysis is concerned with the additional value a product gains by passing through all the activities of the production chain. It is not focused on ensuring costs stay within a targeted range.

Choice "d" is incorrect. Just-in-time management emphasizes efficiency by scheduling the deployment of resources just-in-time to meet customer or production requirements.

13

A manufacturer that wants to improve its staging process compares its procedures against the check-in process for a major airline. Which of the following tools is the manufacturer using?

a.

Benchmarking.

b.

Economic value-added.

c.

Total quality management.

d.

Statistical process control.

 

Choice "a" is correct. Benchmarking is a process where a company compares itself to peers to measure performance and to understand where improvements can be made in its processes.

Choice "c" is incorrect. Total quality management (TQM) is a commitment to customer-focused performance that places an emphasis on both continuous improvement and on quality.

Choice "d" is incorrect. Statistical process control (SPC) is a means of quality control which uses statistics in order to control and monitor a process.

Choice "b" is incorrect. Economic value-added (EVA) is a measure of economic profit where a company's income after taxes (and other adjustments) is compared to its required return.

14

A manufacturer that wants to improve its staging process compares its procedures against the check-in process for a major airline. Which of the following tools is the manufacturer using?

a.

Benchmarking.

b.

Economic value-added.

c.

Total quality management.

d.

Statistical process control.

 

Choice "a" is correct. Benchmarking is a process where a company compares itself to peers to measure performance and to understand where improvements can be made in its processes.

Choice "c" is incorrect. Total quality management (TQM) is a commitment to customer-focused performance that places an emphasis on both continuous improvement and on quality.

Choice "d" is incorrect. Statistical process control (SPC) is a means of quality control which uses statistics in order to control and monitor a process.

Choice "b" is incorrect. Economic value-added (EVA) is a measure of economic profit where a company's income after taxes (and other adjustments) is compared to its required return.

15

Which of the following represents an organizational commitment to customer-focused performance that emphasizes both quality and continuous improvement?

a.

Total Quality Management.

b.

Activity-based Costing.

c.

Just-in-time.

d.

Lean Management.

Choice "a" is correct. Total quality management (TQM) represents an organizational commitment to customer-focused performance that emphasizes both quality and continuous improvement. 

Choice "d" is incorrect. Lean manufacturing or lean production emphasizes the use of only those resources required to meet the requirements of customers. It is somewhat like activity-based approaches, as it seeks to invest resources only in value-added activities.

Choice "c" is incorrect. Just-in-time management anticipates achievement of efficiency by scheduling the deployment of resources just-in-time to meet customer or production requirements.

Choice "b" is incorrect. Activity-based costing focuses on the cost of activities and seeks to only invest resources in value added activity.

16

Hi Tech Corporation is a California based company that has contracted with a separate company in India to handle its customer service call center. Hi Tech Corporation's practice is most accurately described using the term:

a.

Outsourcing.

b.

Globalization.

c.

Shared services.

d.

Offshore operations.

 

Choice "d" is correct. Offshore operations are the outsourcing of services or business functions to an external party in a different country. Hi Tech's decision to operate its call center out of India is an example of offshore operations.

Choice "c" is incorrect. Shared services would involve splitting the cost of a service with another organization, not contracting out with a separate entity.

Choice "a" is incorrect. Although Hi Tech Corporation is outsourcing, the best description of the practice of moving their call center to India is offshore operations because the outsourced service is actually being performed out of the country.

Choice "b" is incorrect. Globalization is the distribution of industrial and service activities across an increasing number of nations. Globalization does not describe the actions of a single company.

17

An example of an internal failure cost is:

a.

Inspection.

b.

Maintenance.

c.

Rework.

d.

Product recalls.

 

Choice "c" is correct. Rework is an internal failure cost.

Choice "b" is incorrect. Maintenance is a prevention cost.

Choice "a" is incorrect. Inspection is a prevention cost.

Choice "d" is incorrect. Product recalls is an external failure cost.

18

Which of the following is not a disadvantage of outsourcing?

a.

Risk mitigation.

b.

Quality of service.

c.

Language barriers.

d.

Security issues.

 

Choice "a" is correct. Non-core functions to one business become critical for companies providing outsourcing services thereby reducing risk exposure in the event an issue arises.

Choice "c" is incorrect. This is a disadvantage. Language barriers contribute to consumer dissatisfaction.

Choice "d" is incorrect. Information security may be less stringently monitored.

Choice "b" is incorrect. The overall quality of service may be adversely impacted.

19

Which one of the following is not a requirement of just-in-time systems?

a.

Reduced setup time.

b.

Employee empowerment.

c.

Supplies received as needed throughout the day.

d.

Strong job specialization.

Choice "d" is correct. Just-in-time means that employees with multiple skills are used more efficiently and will not specialize in merely one job or task.

Choice "c" is incorrect. Just-in-time coordination of supplies inventory generally means synchronization of production scheduling with demand and supplies arrive at regular intervals throughout the production day.

Choice "a" is incorrect. Reduced set up times that no longer need to accommodate buffers for delivery of goods are benefits and features of just-in-time inventory systems.

Choice "b" is incorrect. Just-in-time requires a sense of empowerment amongst employees to ensure the coordination of production and materials delivery is handled with maximum efficiency and accommodates variable schedules.

20

Nonfinancial performance measures are important to engineering and operations managers in assessing the quality levels of their products. Which of the following indicators can be used to measure product quality?

I.

Returns and allowances.

II.

Number and types of customer complaints.

III.

Production cycle time.

a.

I, II, and III.

b.

II and III only.

c.

I and III only.

d.

I and II only.

 

Choice "d" is correct. Returns and allowances and customer complaints may occur if a customer is dissatisfied with the quality of the product purchased. Thus, these two indicators can be used to measure product quality. Production cycle time indicates efficiency in production but does not assess product quality levels.

Choices "c", "b", and "a" are incorrect, based on the above explanation.

21

The benefits of a just-in-time system for raw materials usually include:

a.

Elimination of nonvalue adding operations.

b.

Increase in the number of suppliers, thereby ensuring competitive bidding.

c.

Maximization of the standard delivery quantity, thereby lessening the paperwork for each delivery.

d.

Decrease in the number of deliveries required to maintain production.

Choice "a" is correct. The just-in-time system focuses on expediting the production process by having materials available as needed without having to store them prior to usage. Thus, the nonvalue adding operation of storing materials is eliminated.

Choice "b" is incorrect. A just-in-time system is designed to facilitate the flow of materials whether the materials come from one or more suppliers. Competitive bidding is not a major benefit of the just-in-time system.

Choice "c" is incorrect. Maximizing the delivery quantity of materials may increase the need to store the materials prior to using them. The just-in-time system focuses on minimizing storage time and storage costs. Lessening paperwork is not a focus of the just-in-time system.

Choice "d" is incorrect. With a just-in-time system, deliveries are made as materials are needed. A decrease in deliveries may increase the delivery quantity, thus increasing the need to store the materials prior to using them. The just-in-time system focuses on minimizing storage time and storage costs.

22

Which one of the following is not a benefit of the implementation of the Just-in-time management strategy?

a.

Work-in-process reduction.

b.

Variability increase.

c.

Cost reduction.

d.

Quality improvement.

 

Choice "b" is correct. Just-in-time is not designed to produce variability but to accommodate production cycles and reduce carried inventory by delivering goods to the manufacturing process just-in-time.

Choice "c" is incorrect. Cost reductions from reduced inventory are a benefit of just-in-time.

Choice "a" is incorrect. A reduction to work-in-process because of reduced materials pending processing is a benefit of JIT.

Choice "d" is incorrect. Overall improvements in effectiveness, efficiency and quality are benefits of JIT.

23

Reducing inventory by ensuring that resources arrive only when they are needed most accurately reflects the idea behind which of the following process management philosophies?

a.

Total Quality Management.

b.

Lean Management.

c.

Activity-based Costing.

d.

Just-in-time.

Choice "d" is correct. Just-in-time management emphasizes efficiency by scheduling the deployment of resources just-in-time to meet customer or production requirements.

Choice "a" is incorrect. Total quality management is concerned with customer focused performance, not inventory management.

Choice "b" is incorrect. Lean management emphasizes the use of only those resources needed to meet the requirements of customers; it is not directly focused on inventory management.

Choice "c" is incorrect. Activity-based costing focuses on the cost of activities and those costs that add value to processes.

24

In a quality control program, which of the following is (are) categorized as internal failure costs?

I.

Rework.

II.

Responding to customer complaints.

III.

Statistical quality control procedures.

a.

I only.

b.

I, II, and III.

c.

II only.

d.

III only.

 

Choice "a" is correct. In a quality control program, internal failure costs are incurred because nonconforming products and services are detected prior to being shipped to customers. Examples are rework, scrap, reinspection and retesting.

Choice "c" is incorrect. Responding to customer complaints is an external failure cost incurred because products or services failed to conform to requirements after being delivered to customers.

Choice "d" is incorrect. Statistical quality control procedures are appraisal costs incurred to detect defects.

Choice "b" is incorrect. Only rework represents an internal failure cost as described above.

25

Which one of the following is an example of just-in-time being used for competitive advantage?

a.

BAC Company has decreased the number of job classifications to just a few.

b.

Acme Company tells its maintenance department to intervene only if a machine breaks down.

c.

Big Deal Car Manufacturer increases the number of its suppliers to be less dependent on just a few.

d.

AJAX Cement Company has built a new, huge warehouse to store inventory.

Choice "a" is correct. A benefit of just-in-time is a more efficient use of employees with multiple skills.

Choice "c" is incorrect. Just-in-time is concerned with seamless integration between a few highly vetted suppliers known for reliability and quality resources. 

Choice "d" is incorrect. Just-in-time considers inventory to be wasteful. Inventory space would likely be reduced, not expanded.

Choice "b" is incorrect. Just-in-time enables multi-skilled employees to address any breakdowns without relying on specialized skills of a maintenance department.

26

Which of the following management philosophies does not focus on quality?

a.

Lean.

b.

Absolute conformance.

c.

Total Quality Management.

d.

Gap Analysis.

Choice "a" is correct. The main objective in lean manufacturing is waste reduction. Although customer requirements and demand-pull serve as the basis for the approach, quality is not the preeminent concept.

Choice "d" is incorrect. Gap analysis determines the difference between industry best practices and current company practices. It focuses on quality as it identifies areas that need improvement to meet industry best practices.

Choice "c" is incorrect. Total quality management is driven by customer satisfaction and continuous product improvement.

Choice "b" is incorrect. Absolute conformance represents perfect compliance with pre-established levels of quality.

27

Which of the following is an example of internal failure cost?

a.

Testing.

b.

Tooling changes.

c.

Lost customers.

d.

Preventive maintenance.

 

Choice "b" is correct. Tooling changes are an example of internal failure costs.

Choice "c" is incorrect. Lost customers are an example of external failure cost.

Choice "a" is incorrect. Testing is an example of appraisal costs.

Choice "d" is incorrect. Preventive maintenance is an example of prevention costs.

28

Which of the following is not a typical characteristic of a just-in-time (JIT) production environment?

a.

Push-through system.

b.

Lot sizes equal to one.

c.

Insignificant setup times and costs.

d.

Balanced and level workloads.

Choice "a" is correct. Just-in-time has the goal to minimize the level of inventory carried. Typical characteristics include lot sizes equal to one, insignificant set-up times and costs, and balanced and level workloads. In a just-in-time environment, the flow of goods is controlled by a "pull" approach, where an item is produced only when it is needed down the line, and not a "push-through" system.

Choices "b", "c", and "d" are incorrect based on the above explanation.

29

Which of the following is not a characteristic of Total Quality Management (TQM)?

a.

Waste Reduction.

b.

Customer Focus.

c.

Continuous Improvement.

d.

Quality Circles.

Choice "a" is correct. TQM focuses on customer needs, continuous improvement, and quality circles. Waste reduction is characteristic of lean manufacturing, not TQM.

Choices "b", "c", and "d" are incorrect, based on the above explanation.

30

Quality programs that demand compliance with the most rigorous standards apply the concept of:

a.

Goalpost conformance.

b.

Absolute conformance.

c.

Conforming costs.

d.

Nonconforming costs.

 

Choice "b" is correct. Absolute conformance is the most rigorous standard of quality because it represents a perfect, or ideal, level of compliance.

Choice "a" is incorrect. Goalpost conformance assumes a range of acceptable results. Because it represents achievement of compliance within an established range of tolerable error, goalpost conformance is considered less rigorous than absolute conformance.

Choice "c" is incorrect. Conforming costs are those preventative and appraisal costs invested to detect and prevent errors and do not represent quality standards.

Choice "d" is incorrect. Nonconforming costs are those internal and external failures associated with correcting quality errors associated with non-compliance and do not represent quality standards.

31

The four categories of cost associated with product quality costs are:

a.

External failure, internal failure, training, and appraisal.

b.

Warranty, product liability, prevention, and appraisal.

c.

External failure, internal failure, prevention, and appraisal.

d.

Warranty, product liability, training, and appraisal.

Choice "c" is correct. The four categories of cost associated with product quality are:

Prevention

Appraisal

Internal failure

External failure

Choice "a" is incorrect. "Training" is a part of prevention.

Choices "d" and "b" are incorrect. "Warranty" and "product liability" are a cost of external failure.

32

Organizations with one-piece flow manufacturing environments that are experiencing bottlenecks in production are most likely to develop strategies associated with:

a.

Just-in-time management.

b.

Lean manufacturing.

c.

Demand flow manufacturing.

d.

Theory of constraints.

Choice "d" is correct. The theory of constraints says that organizations are impeded from achieving objectives by the existence of one or more constraints. Organizations or projects must be operated in a manner that either works around or leverages the constraint (in this case, the bottleneck).

Choice "a" is incorrect. Just-in-time (JIT) management says that efficiency improves by scheduling the deployment of resources just in time to meet customer or production requirements. JIT is not the best response to bottlenecks.

Choice "b" is incorrect. Lean manufacturing supports the use of only those resources required to meet the requirements of customers. Lean manufacturing is not an appropriate response to bottlenecks.

Choice "c" is incorrect. Demand flow manufacturing manages resources using customer demand as the basis for resource allocation. Demand flow manufacturing is not an appropriate response to bottlenecks.

33

The maximization of throughput is an inherent concept in which of the following management philosophies?

a.

Activity-based Costing.

b.

Six Sigma.

c.

Total Quality Management.

d.

Theory of Constraints.

Choice "d" is correct. The theory of constraints is concerned with maximizing throughput by identifying and alleviating constraints.

Choice "c" is incorrect. Total quality management strives to please customers by improving their products.

Choice "b" is incorrect. Six Sigma emphasizes cost reduction above production constraints.

Choice "a" is incorrect. Activity-based costing focuses on value added by identifying the cost drivers that add value.

34

Unlike business process reengineering, business process management:

a.

Increases the financial risk associated with change.

b.

Seeks radical change.

c.

Seeks incremental change.

d.

Has a longer implementation time.

Choice "c" is correct. Business process management seeks incremental change by tweaking the existing process and design.

Choice "b" is incorrect. Business process reengineering seeks radical change by ignoring the current process and instead starts from the beginning to design a different way of achieving the end goal and/or product.

Choice "a" is incorrect. Business process management decreases financial risk associated with change because the change is incremental and made to an already functioning process. If it goes badly, you will still be left with a process that works.

Choice "d" is incorrect. Business process reengineering has a longer implementation time because it involves radical change.

35

The cost of statistical quality control in a product quality cost system is categorized as a(n):

a.

Training cost.

b.

Appraisal cost.

c.

Internal failure cost.

d.

Prevention cost.

 

Choice "b" is correct. Appraisal includes the cost of statistical quality control.

Choice "c" is incorrect. Statistical quality control may indicate internal failures but is a cost of appraisal.

Choice "a" is incorrect. Training costs are a part of prevention.

Choice "d" is incorrect. Statistical quality control happens after prevention measures.

36

Which measures would be useful in evaluating the performance of a manufacturing system?

I.

Throughput time.

II.

Total setup time for machines/Total production time.

III.

Number of rework units/Total number of units completed.

a.

I and III only.

b.

I and II only.

c.

I, II, and III.

d.

II and III only.

 

Choice "c" is correct. Throughput refers to the units of goods that are produced and sold within a period of time. It is useful in evaluation. Setup versus production time helps evaluate efficiency-if setup time is long relative to production time, longer production runs may be more efficient. Rework versus completion is also part of the overall evaluation system, aiding in determining whether quality issues are being appropriately addressed.

Choices "b", "d", and "a" are incorrect based on the above explanation.

37

In recent years, much attention has been placed on product quality and total quality control. Which one of the following items would not normally be considered a cost of quality?

a.

Costs incurred in detecting defective products during production.

b.

Costs incurred in shortening production lead times and achieving on-time deliveries.

c.

Costs incurred after defective products have been shipped to customers.

d.

Costs incurred in detecting defective products produced before they are shipped to customers.

Choice "b" is correct. Costs incurred in shortening product lead times and achieving on-time deliveries are measures of performance and not a cost of quality.

Choices "a", "d", and "c" are incorrect, which are all costs of quality.

38

All of the following are appraisal costs, except:

a.

Employee training.

b.

Statistical quality checks.

c.

Testing.

d.

Inspection.

Choice "a" is correct. Employee training costs are an example of prevention costs.

Choices "b", "c", and "d" are incorrect. Statistical quality checks, testing, and inspection are examples of appraisal costs.

39