Questions
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Question at position 7 Match the following cost elements to the appropriate quality cost categoryPrompt 1Costs associated with establishing and operating the company's quality training programAnswer for prompt 1 Costs associated with establishing and operating the company's quality training program[input]Prompt 2Costs associated with inspecting incoming materials to ensure that they meet quality standardsAnswer for prompt 2 Costs associated with inspecting incoming materials to ensure that they meet quality standards[input]Prompt 3Costs associated with creating quality standards/specifications for purchased materialsAnswer for prompt 3 Costs associated with creating quality standards/specifications for purchased materials[input]Prompt 4Costs associated with evaluating and approving a supplier's quality systemsAnswer for prompt 4 Costs associated with evaluating and approving a supplier's quality systems[input]Prompt 5Costs associated with determining the cause(s) of defective products during productionAnswer for prompt 5 Costs associated with determining the cause(s) of defective products during production[input]Prompt 6Costs associated with auditing your company's quality systems to ensure they are functioning accuratelyAnswer for prompt 6 Costs associated with auditing your company's quality systems to ensure they are functioning accurately[input]Prompt 7Costs associated with correcting work-in-progress materials that do not meet the company's quality standardsAnswer for prompt 7 Costs associated with correcting work-in-progress materials that do not meet the company's quality standards[input]Prompt 8Costs associated with replacing defective finished products in the marketAnswer for prompt 8 Costs associated with replacing defective finished products in the market[input]Prompt 9Costs associated with investigating the cause(s) of recalled finished productsAnswer for prompt 9 Costs associated with investigating the cause(s) of recalled finished products[input]Prompt 10Costs associated with designing and maintaining the company's quality systemAnswer for prompt 10 Costs associated with designing and maintaining the company's quality system[input]Possible answersPrevention CostsAppraisal CostsInternal Failure CostsExternal Failure Costs
Options
A.Prevention Costs
B.Appraisal Costs
C.Internal Failure Costs
D.External Failure Costs
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Step-by-Step Analysis
Here is a step-by-step mapping of each cost element to the quality cost category, with reasoning for why the chosen category fits and why the other categories do not.
Prompt 1: Costs associated with establishing and operating the company's quality training program.
- The appropriate category is Prevention Costs. This is because training to prevent defects and ensure quality is an upfront activity designed to avert problems before they occur. Prevention costs aim to reduce the likelihood of failures by building quality into processes.
- Why not Appraisal Costs? Appraisal costs relate to inspecting and testing to detect defects after they occur, not to preventing them in the first place.
- Why not Internal or External Failure Costs? Internal and external failures pertain to costs arising from defects that have already occurred in production or in the market, not from proactive training initiatives.
Prompt 2: Costs associated with inspecting incoming materials to ensure that they meet quality standards.
- The appropriate category is Appraisal Costs. Inspecting incoming materials is a monitoring activity conducted to detect defects before they enter production, aligning with the goal of appraisal activities to identify quality problems.
- Why not Prevention Costs? Prevention would focus on preventing defects, whereas inspection of incoming materials is a detection activi......Login to view full explanationLog in for full answers
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Question at position 9 Costs incurred in the process of finding or discovering defects which includes testing, evaluating, and inspecting quality, are categorized as which of the following?External Failure CostsPrevention CostsAppraisal CostsInternal Failure CostsClear my selection
Question at position 10 According to Philip Crosby's concept of the cost of quality, which of the following statements is NOT true?External failure costs occur after the product is delivered to the customer and can include returns, recalls, and reputation damage.The cost of poor quality only consists of internal failure costs, such as defects found before delivery to customers.Appraisal costs are part of the cost of good quality and involve evaluating products or services to ensure they meet quality standards.The cost of quality includes the expenses associated with preventing poor quality before it occurs.
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