13 14. Which of the following statement is true? a profit-revenue plus total cost b. break-even point is where revenue is equal to total cost e variable cost is the cost regardless of the number of units made d. (F-C) is called the contribution to profit The benefits of using payback period for apprnising projects include the following except: a casy to use and understand b. enhance liquidity e take no consideration of cash flows beyond the payback period d. minimize time related risks a. c. 15. The main difference between quality control and quality assurance is that in quality assurance there is an emphasis on prevention rather than simply detection b. that in quality control is an emphasis on cost control that in quality control is involved in every stage of design, development, manufacture, shipping and after-sales service, that in quality assurance includes the inspections of raw materials. TQM is the responsibility of a QC staff b. operating staff c. project staff d. all staff e. 16. 17. Which of the following best describes the results of an increase in quality? a. increased productivity and reduced cost b. increased productivity and increased cost c. decreased productivity and reduced cost d. decreased productivity and increased cost 18 Which sectors should consider apply for ISO9000 Certification? a industry b. commerce c. education d. all of the above 19. What is the purpose of quality manual in the ISO9000 documentation? a. define approach and responsibility b. define who, what and when c. answer how d. provide quality records 20. Which of the following is NOT a benefit of ISO 9000? a. help to gain a better position on the competitive markets b. suppliers can set up their own quality systems c. provide a better ground to set up environmental management system d. help reduce production rejects, inspection time and the associated costs