Accounting Information Systems
11th Edition
ISBN: 9781337552127
Author: Ulric J. Gelinas, Richard B. Dull, Patrick Wheeler, Mary Callahan Hill
Publisher: Cengage Learning
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Textbook Question
Chapter 12, Problem 4DQ
Without redrawing the figures, discuss how Figure 12.3 (pg. 464), Figure 12.4 (pg. 465), Figure 12.6 (pg. 466), Figure 12.7 (pg. 468), and Figure 12.9 (pg. 470) would change as a result of purchasing a technical product that could not be inspected in the receiving department but had to undergo quality control testing before being accepted.
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(Appendix 11A) Which of the following would be classified as an external failure cost on a quality cost report?
Multiple Choice
Repairs and replacements beyond the warranty period.
Quality engineering.
Systems development.
Quality training.
A company engages in a number of activities as part of its quality control system:
a. Which type of costs are incurred in an effort to keep poor quality of conformance from occurring?
O External failure costs
O Prevention costs and appraisal costs
O Internal failure costs
b. Which type of costs are incurred because poor quality of conformance has occurred?
O Appraisal costs
O Internal and external fallure costs
O Prevention costs
Which of the following is not an example of a typical external failure cost?
Multiple choice question.
Product recalls
Warranty repairs
Debugging system errors
Defective product liability
Chapter 12 Solutions
Accounting Information Systems
Ch. 12 - Prob. 1RQCh. 12 - What primary functions does the purchasing process...Ch. 12 - Prob. 3RQCh. 12 - What are the fundamental responsibilities of each...Ch. 12 - Describe supply chain management (SCM).Ch. 12 - Prob. 6RQCh. 12 - Prob. 7RQCh. 12 - Prob. 8RQCh. 12 - Prob. 9RQCh. 12 - Prob. 10RQ
Ch. 12 - Prob. 11RQCh. 12 - What types of frauds are typically found in the...Ch. 12 - What are the typical effectiveness goals of the...Ch. 12 - What characterizes a valid PO input? What...Ch. 12 - Prob. 15RQCh. 12 - Describe the impact that entity-level controls...Ch. 12 - Refer to the operations process (effectiveness)...Ch. 12 - Explain why ambiguities and conflicts exist among...Ch. 12 - Prob. 3DQCh. 12 - Without redrawing the figures, discuss how Figure...Ch. 12 - Prob. 5DQCh. 12 - Prob. 6DQCh. 12 - Prob. 7DQCh. 12 - Prob. 8DQCh. 12 - Prob. 9DQCh. 12 - Prob. 1SPCh. 12 - Prob. 2SPCh. 12 - Prob. 3SPCh. 12 - Prob. 4SPCh. 12 - Prob. 4PCh. 12 - Prob. 5PCh. 12 - Prob. 6P
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Similar questions
- Which of the following quality costs is an internal failure cost? a. Inspection of reworked units b. Lost sales because of products failing to meet specifications c. Replacing a defective product d. Training production line workers in new quality proceduresarrow_forwardWhich of the following would be a hidden quality cost? a. Inspecting and testing prototypes b. Repairing a computer still under warranty c. Stopping work to correct process malfunction (discovered using statistical process control procedures) d. Lost market share due to poor product performancearrow_forwardAfter a product is inspected, some units may be classified as spoiled and others as defective. What distinguishes a product as being spoiled or defective?arrow_forward
- Rachel Boyce, president of a company that manufactures electronic components, has a number of questions concerning quality and quality costs. She has heard a few things about quality and has asked you to respond to the following questions. Required: 1. What does it mean to have a quality product or service? Explain how product quality and conformance are related. 2. Yesterday, my quality manager told me that we need to redefine what we mean by a defective product. He said that conforming to specifications ignores the cost of product variability and that further reduction of product variability is a veritable gold minejust waiting to be mined. What did he mean?arrow_forwardEnvironmental costs are those costs incurred because poor environmental quality exists or may exist. As with quality costs, environmental costs can be placed into one of four categories. One of these categories is external failure costs. Which of the following describes one of the two external failure cost categories? a. Costs incurred to detect pollution caused by the firm b. Costs incurred to prevent pollution from contaminating the environment after pollution has been produced c. Pollution costs caused by the firm but paid for by society d. Costs incurred to prevent the production of pollutionarrow_forwardWhich of the following is NOT a relevant consideration when assessing if a product is unsafe according to the ACL?Select one:a. Whether the item was manufactured in Australiab. The likely uses to which a person might use the productc. Whether the item contained warning labelsd. How the item was marketede. Whether the item contained sufficient safety instructionsarrow_forward
- 6) Harriet has been reviewing the accounting system for her company and she is very concerned about the accounting for spoilage. It appears that spoilage is accounted for only at the end of the processing cycle. While this concept is acceptable in general, Harriet believes that a better method can be found to properly account for the spoilage when it occurs. She believes that there must be something better than the weighted-average method of accounting for spoilage. She would like the company to use a method that provides closer tracking of the spoilage with the accounting for the spoilage.Required:Discuss the problems Harriet is having with the accounting system.arrow_forwardA number of activities that are part of a company's quality control system are listed below: Required: 1. Classify the costs associated with each of these activities into one of the following categories: prevention cost, appraisal cost, internal failure cost, or external failure cost. Prevention Appraisal Cost Internal Failure Cost External Failure Cost Activities Cost a. Product testing b. Product recalls c. Rework labor and overhead d. Quality circles e. Downtime caused by defects f. Cost of field servicing 9 Inspection of goods h. Quality engineering Warranty repairs j Statistical process control k. Net cost of scrap L Depreciation of test equipment m. Returns and allowances arising from poor quality n. Disposal of production defects o. Technical support to suppliers p. Systems development q. Warranty replacements r. Field testing at customer site s. Quality training 2-n Which tune of costs are incurred in an effort to keen noor auality of conformance from occuirring?arrow_forwardWhich of the following is a prevention cost? a. Inspection of materials. b. Continuing supplier verification. c. Prototype inspection. d. Recalls.arrow_forward
- The entity does not use plastic because it knows that its customer base is sensitive to pollution issues. * Identify whetherA. AvoidanceB. MitigationC. Acceptancearrow_forwardIn your opinion, where should companies spend most of their quality funds: on prevention, inspection, internal failure or external failure costs? Explain your logic in making this selection.arrow_forwardUnder IFRS, the retrospective approach should not be used if: a. retrospective application requires assumptions about management's intent in a prior period. b. the company does not have trained staff to perform the analysis. c. the effects of the change have counterbalanced. d. the effects of the change have not counterbalanced.arrow_forward
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