ACCT 102 EXAM 2 WITH 100%
CORRECT ANSWERS
Which of the following is a prevention cost?
Inspection of the final product
Stopping production to solve a problem before the product is sent to the customer
Inspection of the product in an early stage of production
Evaluation of the quality of a supplier's production process - Answer- Evaluation of the
quality of a supplier's production process
Which of the following is the most likely result of an effective quality management
program?
Increase in prevention cost results in a decrease in all other quality costs.
Increase in internal failure costs results in a decrease in all other quality costs.
Increase in appraisal cost results in a decrease in all other quality costs.
Increase in external failure cost results in a decrease in all other quality costs. - Answer-
Increase in prevention cost results in a decrease in all other quality costs.
The Assembly Department completed work on 8,000 units, at a cost of $20 per unit, and
7,000 of these units were sold for $50 each. What is the journal entry to record the
transfer of production from the Assembly Department? - Answer- A.
Finished Product
160,000 D
Assembly Department
160,000 C
Name the two (2) areas that Conversion Costs are assigned to: - Answer- Conversion
costs include direct labor and overhead expenses. Both are a metric used to determine
the efficiency of production.
What are the four (4) types of Quality Management systems? - Answer- What are the 4
components of quality management?
When broken down, quality control management can be segmented into four key
components to be effective:
quality planning,
quality control,
quality assurance,
CORRECT ANSWERS
Which of the following is a prevention cost?
Inspection of the final product
Stopping production to solve a problem before the product is sent to the customer
Inspection of the product in an early stage of production
Evaluation of the quality of a supplier's production process - Answer- Evaluation of the
quality of a supplier's production process
Which of the following is the most likely result of an effective quality management
program?
Increase in prevention cost results in a decrease in all other quality costs.
Increase in internal failure costs results in a decrease in all other quality costs.
Increase in appraisal cost results in a decrease in all other quality costs.
Increase in external failure cost results in a decrease in all other quality costs. - Answer-
Increase in prevention cost results in a decrease in all other quality costs.
The Assembly Department completed work on 8,000 units, at a cost of $20 per unit, and
7,000 of these units were sold for $50 each. What is the journal entry to record the
transfer of production from the Assembly Department? - Answer- A.
Finished Product
160,000 D
Assembly Department
160,000 C
Name the two (2) areas that Conversion Costs are assigned to: - Answer- Conversion
costs include direct labor and overhead expenses. Both are a metric used to determine
the efficiency of production.
What are the four (4) types of Quality Management systems? - Answer- What are the 4
components of quality management?
When broken down, quality control management can be segmented into four key
components to be effective:
quality planning,
quality control,
quality assurance,
