MGMT 339 UPDATED SCRIPT 2026
PRACTICE SOLUTIONS GRADED A+
● Describe Prevention and Appraisal Costs, and give an example.
Answer: 1. Prevention Cost - Costs associated with preventing defects
before they happen (e.g., training employees, building 3D models of
houses)
2. Appraisal Cost - Costs associated with reviewing how well its
processes perform (e.g, receiving an inspection)
As prevention costs increase, appraisal cost decreases
● Describe Internal Costs and External Costs, and give an example.
Answer: 1. Internal Costs - Costs associated with production. As internal
costs increase, inventory increases (e.g., rework, scrap)
2. External Costs - Costs associated outside the company. It can result in
litigation (customers are not satisfied) or being sued (e.g., a car company
does a recall)
● Describe Ethical Failure and give an example. Answer: 1. Ethical
Failure - Costs associated with passing defective services or products on
purpose. This is the ultimate mistake. (e.g., saying you have a profit
instead of a loss).
, ● What are the 3 Total Quality Management factors?. Answer: 1.
Customer Satisfaction
2. Employee Involvement
3. Continuous Improvement in Performance
● In regard to customer satisfaction, what are the 5 factors?. Answer: 1.
Conformance to Specifications: How well the process meets standards,
such as consistent quality.
2. Value: How well something serves its intended purpose for the price
paid for it
3. Fitness For Use: How well the product works to fulfill customer needs
4. Support: Product Support
5. Psychological Impressions: People's perception of the product based
on employees' attitudes, product display, etc.
● What is Employee Involvement?. Answer: - Employees serve external
customers (buyers) and internal customers (co-workers)
PRACTICE SOLUTIONS GRADED A+
● Describe Prevention and Appraisal Costs, and give an example.
Answer: 1. Prevention Cost - Costs associated with preventing defects
before they happen (e.g., training employees, building 3D models of
houses)
2. Appraisal Cost - Costs associated with reviewing how well its
processes perform (e.g, receiving an inspection)
As prevention costs increase, appraisal cost decreases
● Describe Internal Costs and External Costs, and give an example.
Answer: 1. Internal Costs - Costs associated with production. As internal
costs increase, inventory increases (e.g., rework, scrap)
2. External Costs - Costs associated outside the company. It can result in
litigation (customers are not satisfied) or being sued (e.g., a car company
does a recall)
● Describe Ethical Failure and give an example. Answer: 1. Ethical
Failure - Costs associated with passing defective services or products on
purpose. This is the ultimate mistake. (e.g., saying you have a profit
instead of a loss).
, ● What are the 3 Total Quality Management factors?. Answer: 1.
Customer Satisfaction
2. Employee Involvement
3. Continuous Improvement in Performance
● In regard to customer satisfaction, what are the 5 factors?. Answer: 1.
Conformance to Specifications: How well the process meets standards,
such as consistent quality.
2. Value: How well something serves its intended purpose for the price
paid for it
3. Fitness For Use: How well the product works to fulfill customer needs
4. Support: Product Support
5. Psychological Impressions: People's perception of the product based
on employees' attitudes, product display, etc.
● What is Employee Involvement?. Answer: - Employees serve external
customers (buyers) and internal customers (co-workers)
