SOLVED

11) Rework is an example of: A) prevention costs B) appraisal costs C) internal failure costs D) external failure costs Answer the following questions using the information below: Monticello Furniture manufactures expensive tables. Its varnishing department is fully automated and requires substantial inspection to keep the machines operating properly. An improperly varnished table is very expensive to correct. Inspection hours for the 5,000 tables varnished in September totaled 1,250 hours by 8 employees. Eight quarts of varnish were used, on average, for each table. The standard amount of varnish per table is nine quarts. The cost of inspection for September was equal to the budgeted amount of $38,000. 12) The $38,000 represents a(n): A) activity cost pool B) possible cost allocation base C) internal failure cost D) work-in-process control 13) What is the inspection cost per unit? A) $30.40 B) $7.60 C) $3,800 D) $4,000 14) Cost of quality reports usually do NOT consider: A) external failure costs B) opportunity costs C) internal failure costs D) appraisal costs 15) Examples of opportunity costs include: A) lost sales B) forgone contribution margin C) lower production D) All of these answers are correct. 16) The cost of quality measure has all of the following advantages EXCEPT: A) being a useful measure of comparing different quality improvement projects B) serving as a common denominator for evaluating trade-offs among prevention and failure costs C) focusing on how costly poor quality can be D) being in existence in almost every production circumstance 17) Shortening delivery times is a minor part of the quality improvement process. 18) ISO 9000 developed by the International Organization for Standardization is a set of five international standards for quality management adopted by more than 85 countries. 19) Quality is defined as the total features and characteristics of a product or a service made or performed according to specifications to satisfy customers at the time of purchase and during use. 20) Conformance quality is the performance of a product or service relative to its design and product specif