Value-added activities O include product inspections. O contribute to the product's perceived value. can be eliminated without harming the product or service. O are always more costly than non-value-added activities.
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- In comparing goods and services, O service quality is harder to measure. goods are all non-perishable. O service delivery is easier to plan. O the quality of goods is higher than the quality of services.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 costWhich of the following is not a prevention cost? a. testing finished products b. design engineering c. operator training d. preventive maintenance
- 1. Which of the following is NOT a key characteristic of Conformance Costs? a) They include expenses related to preventing defects. b) They are also known as Internal Failure Costs. e) They encompass activities like employee training and quality engineering. d) They are incurred to ensure defect-free products.Cite a specific example of non-value added activity that can be eliminated in a particular industry. Justify your answer.Which of the following is a false statement about scrap and by-products? Select one: a. Both scrap and by-products are incidental outputs to the joint process. b. Management’s goal is to produce both scrap and by-products. c. Both by-products and scrap are salable. d. A by-product has a higher sales value than does scrap.
- Which of the following decreases the non-value added time of producing a product and in turn increases the quality of the product?a. Redesigning products b. Increasing movements of subassemblies c. Adding processes in production d. Increasing time spent on delivery of productsWrong allocation of common costs lead to A. Inaccurate estimation of cost of products or services B. Under utilization of capacity C. Lower profit margin D. All of the above are correctWhen deciding whether to sell as is or process a product further, managers should ignore which of the following? a. The costs of processing the product thus far b. The cost of processing further c. The revenue if the product is sold as is d. The revenue if the product is processed further
- Which of the following statements best describes the traditional view of quality? A All of the answers are correct. B The traditional view of quality holds that firms can reduce total costs by tolerating some level of defective goods. C The traditional view of quality holds that firms can reduce total costs by producing higher-quality goods. D The traditional view of quality assumes that improving quality seldom requires increasing costs.Which of the following is likely to be used to reduce the cost of reworking products? a. Activity sharing b. Activity elimination c. Activity reduction d. Activity selectionEnvironmental 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 pollution