Q1) Of the following balanced scorecard measures, which should a company want to decrease rather than decrease?

a) average number of workplace accidents per employee

b) percent of workforce promoted in the last five years

c) defect-free unites as a percentage of completed units

d) price-earnings ratio

Q2) Warranty repairs and replacement activities is an example of which of the categories of cost of quality?

a) prevention costs

b) appraisal costs

c) internal failure costs

d) external failure costs

Q3) The following table provides the costs of quality for a company.

Quality circles	$34,000
Supervision of testing and inspection activities	$88,000
Quality training	$96,000
Re-entering data because of keyboard errors	$62,000
Product recalls	$60,000
Rework labour and overhead	$51,000
Maintenance of test equipment	$27,000
Supplies used in testing and inspection	$102,000
Liability from defective products	$15,000

What percentage of the total costs of quality are internal failure costs? Round your answer to 2 decimal places (ie., XX.XX%)

____________

Q4) Which of the balanced scorecard measures is not classified into the appropriate category with which it is associated?

a) number of customer referrals- customer

b) gross margin percentage- financial

c) number of warranty claims- internal business process

d) employee turnover percentage- financial

Q5) You are provided the following details:

Ideal run rate	4.0 units / minute
Defective output	750 units
Actual run time	4,500 minutes
Defect free output	15,000 units
Machine time available	5,100 minutes
Actual run rate	3.5 units / minute

Calculate the efficiency rate - round to 4 decimal places X.XXXX

__________

Q6) Select the pair of words that accurately completes the following statement:

_______ costs are always ________

a) fixed; relevant

b) variable; relevant

c) incremental; relevant

d) sunk; relevant