Essay on Cost Accounting Chapter 19

11089 Words Jun 12th, 2013 45 Pages
Cost Accounting, 14e (Horngren/Datar/Rajan)
Chapter 19 Balanced Scorecard: Quality, Time, and the Theory of Constraints

Objective 19.1

1) Quality management provides an important competitive edge because it:
A) reduces costs
B) increases customer satisfaction
C) often results in substantial savings and higher revenues in the short run
D) All of these answers are correct.
Answer: D
Diff: 1
Terms: quality
Objective: 1
AACSB: Ethical reasoning

2) Quality of design measures how closely the characteristics of products or services match the needs and wants of customers. Conformance quality:
A) measures the same things
B) is the performance of a product or service according to design and product specifications
C) is
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etected before it is shipped to customers are:
A) prevention costs
B) appraisal costs
C) internal failure costs
D) external failure
Answer: C
Diff: 2
Terms: conformance quality, internal failure costs
Objective: 1
AACSB: Reflective thinking

7) Preventive equipment maintenance is an example of:
A) prevention costs
B) appraisal costs
C) internal failure costs
D) external failure costs
Answer: A
Diff: 1
Terms: prevention costs
Objective: 1
AACSB: Reflective thinking

8) Spoilage is an example of:
A) prevention costs
B) appraisal costs
C) internal failure costs
D) external failure costs
Answer: C
Diff: 2
Terms: internal failure costs
Objective: 1
AACSB: Reflective thinking

9) A liability claim is an example of:
A) prevention costs
B) appraisal costs
C) internal failure costs
D) external failure costs
Answer: D
Diff: 2
Terms: external failure costs
Objective: 1
AACSB: Reflective thinking

10) Design engineering is an example of:
A) prevention costs
B) appraisal costs
C) internal failure costs
D) external failure costs
Answer: A
Diff: 2
Terms: external failure costs
Objective: 1
AACSB: Reflective thinking

11) Rework is an example of:
A) prevention costs
B) appraisal costs
C) internal failure costs
D) external failure costs
Answer: C
Diff: 2
Terms: external failure costs
Objective: 1
AACSB: Reflective thinking

Answer the following questions using the information below:

Monticello

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