QUESTIONS AND CORRECT DETAILED ANSWERS
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Which of the following DOES NOT increase profit by improving quality?
A. higher warranty costs
B. improved reputation
C. increased productivity
D. flexible pricing - CORRECT ANSWER- a. higher warranty costs
Which of the following could reduce costs and increase profit?
A. increased productivity
B. flexible pricing
C. improved reputation
D. improved response - CORRECT ANSWER- a. increased productivity
The American Society for Quality defines quality as
,A. how well a product fits patterns of consumer preferences.
B. the degree of excellence at an acceptable price and the control of variability at
an acceptable cost.
C. even though it cannot be defined, you know what it is.
D. the totality of features and characteristics of a product or service that bears on
its ability to satisfy stated or implied needs. - CORRECT ANSWER- D. the totality of
features and characteristics of a product or service that bears on its ability to
satisfy stated or implied needs.
Which of the following is an award for quality achievement in Japan?
A. Malcolm Baldrige National Quality Award
B. ISO 9000
C. Deming Prize
D. Tokyo Medal for Excellence in Quality - CORRECT ANSWER- C. Deming prize
Managing quality helps build successful strategies of:
A. differentiation, low cost and response.
B. differentiation, time and response.
C. differentiation, low cost and service.
D. differentiation, time and service. - CORRECT ANSWER- a. differentiation, low cost
and response
, A successful quality strategy begins with:
A. an organizational culture that fosters quality.
B. satisfying customers and obtaining a competitive advantage.
C. an understanding of the principles of quality.
D. engaging employees in the necessary activities to implement quality. - CORRECT
ANSWER- a. an organizational culture that fosters quality
Which of the following costs is NOT a cost of quality?
A. research and development
B. rework
C. lost goodwill
D. scrap - CORRECT ANSWER- A. research and development
Which of the following is NOT an external failure cost?
A. lost goodwill
B. returned goods
C. scrap
D. costs to society - CORRECT ANSWER- c. scrap