Which of the following statements are true? (Check all that apply.) Multiple select question. Measuring and reporting quality costs does not solve quality problems. As managers become more experienced in balancing prevention and appraisal activities, the need for quality cost reports often increases. Lost sales arising from customer ill will are generally not found on quality control reports. Decreases in quality costs generally occur as soon as improvement programs are implemented.
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Which of the following statements are true? (Check all that apply.)
Measuring and reporting quality costs does not solve quality problems.
As managers become more experienced in balancing prevention and appraisal activities, the need for quality cost reports often increases.
Lost sales arising from customer ill will are generally not found on quality control reports.
Decreases in quality costs generally occur as soon as improvement programs are implemented.
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- Which of the following statements are true? Multiple select question. Measuring and reporting quality costs does not solve quality problems. The impact of customer ill will is generally not found on quality control reports. As managers become more experienced in balancing prevention and appraisal activities, the need for quality cost reports often increases. Decreases in quality costs generally occur as soon as improvement programs are implemented.These are measures not found in the chart of accounts, such as customer satisfaction scores or product quality measures. A. Quality measures B. Non-financial measures C. Financial Measures D. Balanced Scorecard A manager would like to see reduction of the following operational measures, except: A. Spoilage B. Number of customer complaints C. Queue time D. Manufacturing EfficiencyWhich of the following is NOT a problem associated with standard cost accounting? a. Standard costing motivates management to produce large batches of products and build inventory. b. Applying standard costing leads to product cost distortions in a lean environment. c. Standard costing data are associated with excessive time lags that reduce its usefulness. d. The financial orientation of standard costing may promote bad decisions. e. All of the above are problems with standard costing.
- Identify the following activities as per their respective categories under quality costs: 1.Lost profit from lost sales from bad review 2.Unplanned replacement 3.Correction and customer supportThe cost of lost future sales after a customer finds a defect in a product is which type of quality cost? Prevention cost Appraisal cost Internal failure cost External failure costHistorically, performance measurement systems have been based on accounting or other quantitative numbers. One issue is that some accounting numbers can be affected by the actions of managers, and this may result in distorted performance results. A well-designed performance measurement system should eliminate these potential conflicts, as much as possible. There is a way to prevent these issues associated with using accounting measures as performance measures through use of nonaccounting measures in conjunction with accounting-based measures to help mitigate the problems of using accounting-based measures alone. Most performance measurement systems today use a combination of accounting-based measures and non-accounting-based measures, short-term or long-term indicators, or quantitative and qualitative components. True / False
- Which of the following statements best describes the relationship among the costs of quality? a. The amount spent on prevention and appraisal costs has no impact on the amount spent on internal and external failure costs. b. Adequate spending on prevention and appraisal costs will eliminate all internal and external failure costs. c. Spending more on prevention and appraisal costs will reduce the total overall costs of quality. d. Spending more on prevention and appraisal costs will increase the total overall costs of quality.The cost of lost future sales after a customer finds a defect in a product is which type of quality cost? a. Prevention cost b. Appraisal cost c. Internal failure cost d. External failure cost1. There is a significant decrease in unit sales. Which of the following would be the LEAST likely action among the different departments? a. Consult with marketing and sales to determine whether there are changes in customer preferences. b. Review changes in technology and determine whether there is obsolescense in the products and the production process c. Inquire with the after-sales service whether there are indications of high level of unresolved customer complaints. d. Communicate with inbound logistics and determine whether raw materials contributed to increase in product failure. 2. The internal cost analysis process involves the following in what order? (A) Identify the links between the process and check for opportunities to lower costs, (B) Identify the value creating processes and the cost of each, (C) Identify the cost driver for each process and the cost per activity level. a. A, B, Cb. C, A, Bc. B, A, Cd. B, C, A 3. This stage of…
- Which of the following is not a characteristic of a good performance measurement system? A. timely B. consistent C. based on activities over which managers have no control or influence D. uses both long- and short-term performances and standardsAn example of a nonfinancial measure for customer satisfaction is: delivery delay employee turnover number of defects on the production line process yield none of the above could be customer satisfaction measures 2.Measures of the balanced scorecard's financial perspective might include all of the following EXCEPT: operating income customer satisfaction gross profit percentage cost reductions 3. Which of the following is NOT true of the balanced scorecard? Different strategies call for different scorecard measures. Successful implementation requires commitment and leadership from top management. Only objective measures should be used and subjective measures should be avoided. Cause and effect linkages are implied by the balanced scorecard, and even though they may not be precise, can and should evolve over time.Which one of the following would be considered a financial cost of organizational control? The cost of failing to recognize opportunities to increase sales due to data loss. The cost of having financial statements audited by an independent accounting firm. The cost of an upset customer who leaves the store because it took too long for a manager to approve a price adjustment for a customer farther up in the line.