(True/false) Mark each of the following statements as true or false and explain why the false statements...

Question:

(True/false) Mark each of the following statements as true or false and explain why the false statements are incorrect.

a. The total quality cost is the sum of prevention cost plus failure cost.

b. Traditional accounting systems have separate accounts to capture quality costs.

c. Pareto analysis is used to help managers identify areas in which to focus quality-improvement efforts.

d. As the number of defective products manufactured rises, internal failure costs also rise, but external failure costs are expected to decline.

e. Higher quality yields lower profits but higher productivity.

f. Total quality management has production processes as its focus rather than customer satisfaction.

g. Results benchmarking relies only on comparisons to firms within the same industry.

h. SPC control charts are used to plot the costs of quality over time.

i. Activity analysis can be used to identify non-value-added activities.

j. Quality is free.

LO1

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Related Book For  book-img-for-question

Cost Accounting Traditions And Innovations

ISBN: 9780538880473

3rd Edition

Authors: Jesse T. Barfield, Cecily A. Raiborn, Michael R. Kinney

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