1.) If quality cost are viewed as conformance versus non-conformance, quality expert Philip Crosby would argue that there is no such thing as a quality problem, but only a problem of:

a.Design

b.Materials

c.Labor

d.All of the above

2.) If one were to classify quality costs as prevention, appraisal, internal failure and external failure, the lowest and highest costs would tend to be respectively:

a. Appraisal and external failure.

b.Appraisal and internal failure

c.Prevention and internal failure

d.Prevention and external failure

3.) Whichever of the many helpful tools a firm chooses for identifying significant quality problems, the tool(s) will be most effective if:

a.Management accountants are not involved in their selection

b.Management accountants take a pro-active role throughout the process

c.The firm hires technical experts to choose the tool(s)

d.The firm leaves selection of the tool(s) to the supervisors.

4.) Costs of meetings would be classified as

a.Prevention costs

b.Retention costs

c. Appraisal costs

d.Internal failure costs

5.)Finished goods inspection costs would be classified as

a.Prevention costs

b.Retention costs

c.Appraisal costs

d. Internal failure costs

6.) Implementation of total quality management (TQM) in a firm:

a.must follow a rigid, predetermined process to be successful.

b.involves some lower-level managers and all senior executives

c.takes from 3-5 years.

d.is a bottom up process, with senior management involved only in the final phase.

7.) Goalpost quality conformance differs from absolute quality conformance like:

a."generally" differs from "always."

b."range" differs from "point."

c."probable" differs from "certain."

d."many" differs from "one."

8.)Changing to an activity-based costing/management system will not

a.change the way that resource are allocated.

b.change the way that costs are allocated

c.change all the people's jobs.

d.change the way that performance is evaluated.

9.) Typically, as a prevention costs increase, other costs of quality:

a.Are not affected

b.Change, but the direction cannot be predicted

c.Increase, but at a slower pace

d.Decrease

10.) Appraisal costs are incurred to measure and analyze data to test product or service conformity to specifications, but not to:

a.Reduce error or prevent recurrence of error

b.Change procedures

c.Change policy

d.Check on quality standards

11.) Which of the following is not one of the steps in the life cycle of a product?

a.Manufacturing, inspecting, packaging and warehousing

b.Research and development

c.Purchasing and receiving

d.Marketing, promotion and distribution

12.)Target costing forces the firm to become more competitive, like:

a.Reengineering c. activity-based costing

b.Life-cycle costing d. benchmarking

13.) In comparison to the Coat Life Cycle of a product , the Sales Life Cycle of a product is:

a.Much shorter

b.Much longer

c.Exactly parallel, except that it is expressed in sales terms

d.Different because it represent a sequence of phases relating to sales, not production.

14.) In each of the phases of a product's sales life cycle, management's focus will be:

a.Parallel

b.On the next phase as well as the current one

c.Different

d.Undifferentiated

15.) Because of the four stages of a product's sales life cycle has a different emphasis, the cost management system will be expected to provide data that is:

a.Different at each stage

b.Common to all stages

c.Lesser in amount in the later stages

d.Lesser in amount in the early stages

16.) The sequence of activities within the firm which begins with research and development, followed by design, and manufacturing, marketing/distribution, and customer service is the:

a.Sales life cycle

b.Target life cycle

c.Market life cycle

d.Critical life cycle

17.) Which one of the following is a common type of value engineering in which each major function or feature of the product is examined in terms of its performance and cost?

a.Benchmarking

b.Functional analysis

c.Productivity analysis

d.Functional engineering

18.) Which one of the following is a common form of value engineering in which the designing team prepares several possible design of the product?

a.Benchmarking

b.Functional analysis

c.Productivity analysis

d.Design analysis

19.) Which one of the following is not one of the five steps in TOC analysis?

a.Identify the binding constrain(s).

b.Determine the most efficient utilization for each binding constraint.

c.Manage the flow through the binding constraint.

d.Deduct capacity from the constraint.

20.) Which one of the following is a downstream cost?

a.Research and development

b. Packaging

c. Purchasing

d. Prototyping

21.)Which one of the following industries has high upstream costs?

a.Retail c. cosmetics

b.Perfumesd. computer software

22.) Which of the following is not a critical success factor at the design stage?

a.Improved ease-of-manufacture

b.Reduced time-to-market

c.Reduced expected service costs

d.Enhance quality

23.) Which one of the following is not a common design method?

a. Concurrent engineering

b.Design engineering

c.Templating

d.Prototyping

24.) Sales begin to grow rapidly and product variety increases in:

a.Phase three c. phase five

b.Phase twod. phase four

25.) Sales continue to increase but at a decreasing rate is:

a.Phase threec. phase five

b.Phase twod. phase four

26.)Sales begin to decline, as does the number of competitors, in:

a.Phase threec. phase five

b.Phase twod. phase four

27.) Conformance to a quality specification expressed as a specified range around a target is

a.endzone conformance

b.target conformance

c.goalpost conformance

d.absolute quality conformance

28.) Just-in-time purchasing requires

a.larger and less frequent purchase orders

b.smaller and less frequent purchase orders

c.smaller and more frequent purchase orders.

d.larger and more frequent purchase orders

29.) A demand-pull system in which each component in a production line is produced immediately as needed by the next step in the production line is referred to as

a.just-in-time purchasing

b.materials requirements planning

c.relevant total cost

d.economic order quantity

30.) A well-designed MACS develops and uses

a.Both quantitative and qualitative information for control, motivation and performance evaluation.

b.Only quantitative information for control, motivation and performance evaluation

c.Only qualitative information for control, motivation and performance evaluation.

d.Neither quantitative nor qualitative information for control, motivation, and performance evaluation.