cost accounting chapter 19.docVIP

Cost Accounting, 14e (Horngren/Datar/Rajan) Chapter 19 Balanced Scorecard: Quality, Time, and the Theory of Constraints Objective 19.1 1) Quality management provides an important competitive edge because it: A) reduces costs B) increases customer satisfaction C) often results in substantial savings and higher revenues in the short run D) All of these answers are correct. Answer: D Diff: 1 Terms: quality Objective: 1 AACSB: Ethical reasoning 2) Quality of design measures how closely the characteristics of products or services match the needs and wants of customers. Conformance quality: A) measures the same things B) is the performance of a product or service according to design and product specifications C) is making the product according to design, engineering, and manufacturing specifications D) focuses on fitness of uses from a customer perspective Answer: B Diff: 1 Terms: design quality Objective: 1 AACSB: Ethical reasoning 3) Which of the following FAIL to satisfy conformance quality? A) machines that fail to meet the needs of customers B) machines that break down C) depositing a customers check into the correct account D) All of these answers are correct. Answer: B Diff: 2 Terms: conformance quality Objective: 1 AACSB: Reflective thinking 4) Costs incurred in precluding the production of products that do NOT conform to specifications are: A) prevention costs B) appraisal costs C) internal failure costs D) external failure costs Answer: A Diff: 2 Terms: conformance quality, prevention costs Objective: 1 AACSB: Reflective thinking 5) Costs incurred in detecting which of the individual units of products do NOT conform to specifications are: A) prevention costs B) appraisal costs C) internal failure costs D) external failure costs Answer: B Diff: 2 Terms: conformance quality, appraisal costs Objective: 1 AACSB: Reflective thinking 6) Costs incurred by a nonconforming product detected before it is shipped t