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6) The calibration of testing equipment is classified as what type of cost? a. Prevention b. Appraisal c. Internal Failure d. External Failure e. None

6) The calibration of testing equipment is classified as what type of cost? a. Prevention b. Appraisal c. Internal Failure d. External Failure e. None of the above

7) The best use or result of monitoring the various quality costs is: a. Management can identify who to blame b. Intentional increases in Prevention and Appraisal costs may reduce total quality costs overall c. It keeps someone employed to track and report these costs d. We can show the shareholders that we care about quality

8) Comparing your company's results to others, without their knowledge is: a. Illegal b. Called unilateral benchmarking c. Will not provide much benefit d. Part of Game Theory

9) In the Industry Lifecycle: a. The key points are when the rate of growth begins to slow, becomes zero and becomes negative b. Will not affect pricing decisions c. Shows industry profits over time d. A & C

10) The electric car is in which part of the Industry Life Cycle? a. Growth b. Maturity c. Decline d. None of the above

11) Service department allocations can be done in more than one way. Which is correct? a. The direct method and cross application method b. The reciprocal method and step-up method c. The reciprocal, step-down, and direct methods d. None of the above

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