ACG 3341 Exam 3 Questions With Complete Solutions
2 aspects of quality Correct Answers 1. design quality
2. conformance quality
2 operational measures of time Correct Answers 1. customer
response time
2. on time performance
4 balanced scorecard perspectives Correct Answers 1. financial
2. customer
3. internal business
4. learning and growth
4 costs of quality (financial perspective) Correct Answers 1.
prevention costs
2. appraisal costs
3. internal failure costs
4. external failure costs
5 step decision making Correct Answers 1. identify the
problem and uncertainties
2. obtain information
3. make predictions about the future
4. choose among alternatives
5. implement the decision, evaluate performance, and learn
Absorption costing Correct Answers all variable and fixed
costs are inventoriable
-VMOH and FMOH are capitalized
-period costs are expensed
, ***required by GAAP***
advantages of COQ (financial) measures Correct Answers 1.
focus managers' attention on how poor quality affects operating
income
2. helps managers aggregate costs to evaluate tradeoffs of
incurring prevention and appraisal costs to eliminate internal and
external failure costs
3. assist in problem solving by comparing costs and benefits of
different quality-improvement programs and setting priorities
for cost reduction
advantages of nonfinancial measures Correct Answers 1. easy
to quantify and understand
2. directs attention to physical processes and areas that need
improvement
3. provide immediate short-run feedback on whether quality-
improvement efforts are succeeding
4. useful indicators of future long-run performance
appraisal costs definition Correct Answers used to detect which
units do not conform to specifications
appraisal costs examples Correct Answers 1. inspection
2. online product manufacturing and process inspection
3. product testing
Balance sheet approach to comparative income statement effects
Correct Answers OIac - OIvc =
FMOHei - FMOHbi =
(EI-BI) (FMOH per unit)
2 aspects of quality Correct Answers 1. design quality
2. conformance quality
2 operational measures of time Correct Answers 1. customer
response time
2. on time performance
4 balanced scorecard perspectives Correct Answers 1. financial
2. customer
3. internal business
4. learning and growth
4 costs of quality (financial perspective) Correct Answers 1.
prevention costs
2. appraisal costs
3. internal failure costs
4. external failure costs
5 step decision making Correct Answers 1. identify the
problem and uncertainties
2. obtain information
3. make predictions about the future
4. choose among alternatives
5. implement the decision, evaluate performance, and learn
Absorption costing Correct Answers all variable and fixed
costs are inventoriable
-VMOH and FMOH are capitalized
-period costs are expensed
, ***required by GAAP***
advantages of COQ (financial) measures Correct Answers 1.
focus managers' attention on how poor quality affects operating
income
2. helps managers aggregate costs to evaluate tradeoffs of
incurring prevention and appraisal costs to eliminate internal and
external failure costs
3. assist in problem solving by comparing costs and benefits of
different quality-improvement programs and setting priorities
for cost reduction
advantages of nonfinancial measures Correct Answers 1. easy
to quantify and understand
2. directs attention to physical processes and areas that need
improvement
3. provide immediate short-run feedback on whether quality-
improvement efforts are succeeding
4. useful indicators of future long-run performance
appraisal costs definition Correct Answers used to detect which
units do not conform to specifications
appraisal costs examples Correct Answers 1. inspection
2. online product manufacturing and process inspection
3. product testing
Balance sheet approach to comparative income statement effects
Correct Answers OIac - OIvc =
FMOHei - FMOHbi =
(EI-BI) (FMOH per unit)
