CGMS401 Exam 2 Questions With All
Correct Detailed Answers A+ Pass
Benchmarking requires the comparison of your firm to other organizations; it is
not appropriate to benchmark by comparing one of your divisions to another of
your divisions. - CORRECT ANSWER-False
The phrase Six Sigma has two meanings. One is statistical, referring to an
extremely high process capability; the other is a comprehensive system for
achieving and sustaining business success - CORRECT ANSWER-True
A successful quality strategy features all of the following steps except
a) An organization environment that fosters quality
b) Understanding the principles of quality
c) Engaging employees in the necessary activities for quality implementation
d) Finding the lowest cost supplier
e) Empowering employees - CORRECT ANSWER-d) finding the lowest cost
supplier
,According to the manufacturing-based definition of quality
a) Quality is the degree of excellence at an acceptable price and the control of
variability at an acceptable cost
b) Quality depends on how well the product fits patterns of consumer preferences
c) Even though quality cannot be defined, you know what it is
d) Quality is the degree to which a specific product conforms to standards
e) Quality lies in the eyes of the beholder - CORRECT ANSWER-d) quality is the
degree to which specific product conforms to standards
The role of quality in limiting a firm's product liability is illustrated by all of the
following except
a) Ensuring that contaminated products such as impure foods do not reach
customers
b) Ensuring that products meet standards such as those of the Consumer Product
Safety Act
c) Designing safe products to limit possible harm to consumers
d) Using processes that make products as safe or as durable as their design
specifications
e) Making it easy for customers to complain about defective products - CORRECT
ANSWER-e) making it easy for customers to complain about defective products
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law
, Which of the following is NOT one of the major categories of costs associated
with quality?
a) Prevention costs
b) Appraisal costs
c) Internal failures
d) External failures
e) Environmental costs - CORRECT ANSWER-e) environmental costs
Quality can improve profitability by reducing costs. Which of the following is not
an aspect of reduced costs by quality improvements?
a) Flexible pricing
b) Increased productivity
c) Lower rework
d) Lower warranty costs
e) Lower scrap costs - CORRECT ANSWER-a) Flexible pricing
Which of the following statements is false?
a) Self-promotion is not a substitute for quality products
b) Inferior products harm a firm's profitability and a nation's balance of payments
Correct Detailed Answers A+ Pass
Benchmarking requires the comparison of your firm to other organizations; it is
not appropriate to benchmark by comparing one of your divisions to another of
your divisions. - CORRECT ANSWER-False
The phrase Six Sigma has two meanings. One is statistical, referring to an
extremely high process capability; the other is a comprehensive system for
achieving and sustaining business success - CORRECT ANSWER-True
A successful quality strategy features all of the following steps except
a) An organization environment that fosters quality
b) Understanding the principles of quality
c) Engaging employees in the necessary activities for quality implementation
d) Finding the lowest cost supplier
e) Empowering employees - CORRECT ANSWER-d) finding the lowest cost
supplier
,According to the manufacturing-based definition of quality
a) Quality is the degree of excellence at an acceptable price and the control of
variability at an acceptable cost
b) Quality depends on how well the product fits patterns of consumer preferences
c) Even though quality cannot be defined, you know what it is
d) Quality is the degree to which a specific product conforms to standards
e) Quality lies in the eyes of the beholder - CORRECT ANSWER-d) quality is the
degree to which specific product conforms to standards
The role of quality in limiting a firm's product liability is illustrated by all of the
following except
a) Ensuring that contaminated products such as impure foods do not reach
customers
b) Ensuring that products meet standards such as those of the Consumer Product
Safety Act
c) Designing safe products to limit possible harm to consumers
d) Using processes that make products as safe or as durable as their design
specifications
e) Making it easy for customers to complain about defective products - CORRECT
ANSWER-e) making it easy for customers to complain about defective products
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law
, Which of the following is NOT one of the major categories of costs associated
with quality?
a) Prevention costs
b) Appraisal costs
c) Internal failures
d) External failures
e) Environmental costs - CORRECT ANSWER-e) environmental costs
Quality can improve profitability by reducing costs. Which of the following is not
an aspect of reduced costs by quality improvements?
a) Flexible pricing
b) Increased productivity
c) Lower rework
d) Lower warranty costs
e) Lower scrap costs - CORRECT ANSWER-a) Flexible pricing
Which of the following statements is false?
a) Self-promotion is not a substitute for quality products
b) Inferior products harm a firm's profitability and a nation's balance of payments
