Quality Costs and Costing Methods Quiz

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Which costing method tends to overcost high-volume items within a product type?

Traditional costing method (correct)

Direct labor costing method

Activity-based costing method

Unit-based costing method

Which costing method will make proportional allocations for more complex products?

Direct labor costing method

Unit-based costing method

Traditional costing method

Activity-based costing method (correct)

Which costing method will undercost more complex products?

Activity-based costing method

Direct labor costing method

Unit-based costing method (correct)

Traditional costing method

What do quality costs reflect?

Product or service requirements Signup and view all the answers

Which cost component is incurred in planning, implementing, and maintaining a quality system to prevent poor quality?

Prevention costs Signup and view all the answers

Which cost component is associated with the identification and correction of defects before delivery to customers?

Appraisal costs Signup and view all the answers

Which cost component is associated with the costs of defects that occur after delivery to customers?

Failure costs Signup and view all the answers

What is the difference between quality costs and the reduced cost if products and services were all conforming?

Quality costs Signup and view all the answers

Which category of quality costs includes costs incurred in planning and implementing quality systems?

Prevention costs Signup and view all the answers

Which category of quality costs includes costs associated with the identification and correction of defects?

Appraisal costs Signup and view all the answers

Which of the following is an example of a prevention cost?

The cost of calibrating measuring instruments Signup and view all the answers

Which category of costs occurs during or after production but before the product is released to the customer?

Appraisal costs Signup and view all the answers

Which of the following is an example of an internal failure cost?

The cost of repairing nonconforming products Signup and view all the answers

Which category of costs is associated with managing the outcome of a product?

External failure costs Signup and view all the answers

Which of the following is an example of an external failure cost?

The cost of handling and replacing nonconforming products Signup and view all the answers

Which category of costs includes salaries and developmental costs for product design?

Prevention costs Signup and view all the answers

Which of the following is an example of a hidden failure cost?

The cost of line downtime Signup and view all the answers

Which category of costs includes costs associated with defect cause and removal?

Prevention costs Signup and view all the answers

Which of the following is an example of an appraisal cost?

The cost of calibrating measuring instruments Signup and view all the answers

Which category of costs is incurred when products fail to meet quality requirements prior to the transfer of ownership to the customer?

Internal failure costs Signup and view all the answers

Which of the following is an example of an external failure cost?

Servicing commitments Signup and view all the answers

Which category of quality costs includes costs associated with the identification and correction of defects?

Internal failure costs Signup and view all the answers

Which costing method tends to overcost high-volume items within a product type?

Unit-based costing method Signup and view all the answers

Which category of costs is incurred when products fail to meet quality requirements prior to the transfer of ownership to the customer?

Hidden failure costs Signup and view all the answers

Which costing method will make proportional allocations for more complex products?

Activity-based costing method Signup and view all the answers

Which of the following is an example of an appraisal cost?

Hidden failure costs Signup and view all the answers

Which category of costs includes salaries and developmental costs for product design?

Prevention costs Signup and view all the answers

Which of the following is an example of an internal failure cost?

Hidden failure costs Signup and view all the answers

Which category of quality costs includes costs associated with defect cause and removal?

Prevention costs Signup and view all the answers

What do quality costs reflect?

The difference between actual cost and reduced cost Signup and view all the answers

Which of the following is an example of a prevention cost?

Cost of calibrating measuring instruments Signup and view all the answers

Which category of quality costs includes costs associated with the inspection and testing of incoming materials?

Appraisal costs Signup and view all the answers

Which cost component is associated with the costs of defects that occur after delivery to customers?

External failure costs Signup and view all the answers

Which of the following is an example of an internal failure cost?

Scrap and rework costs Signup and view all the answers

Which category of costs occurs during or after production but before the product is released to the customer?

Appraisal costs Signup and view all the answers

Which of the following is an example of a hidden failure cost?

Line downtime Signup and view all the answers

Which category of costs includes costs associated with defect cause and removal?

Prevention costs Signup and view all the answers

Which costing method tends to overcost high-volume items within a product type?

Full costing Signup and view all the answers

Which category of quality costs includes costs associated with the identification and correction of defects?

Internal failure costs Signup and view all the answers

Which costing method will undercost more complex products?

Direct costing Signup and view all the answers

Quality Costs and Costing Methods Quiz

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Questions and Answers

Which costing method tends to overcost high-volume items within a product type?

Which costing method will make proportional allocations for more complex products?

Which costing method will undercost more complex products?

What do quality costs reflect?

Which cost component is incurred in planning, implementing, and maintaining a quality system to prevent poor quality?

Which cost component is associated with the identification and correction of defects before delivery to customers?

Which cost component is associated with the costs of defects that occur after delivery to customers?

What is the difference between quality costs and the reduced cost if products and services were all conforming?

Which category of quality costs includes costs incurred in planning and implementing quality systems?

Which category of quality costs includes costs associated with the identification and correction of defects?

Which of the following is an example of a prevention cost?

Which category of costs occurs during or after production but before the product is released to the customer?

Which of the following is an example of an internal failure cost?

Which category of costs is associated with managing the outcome of a product?

Which of the following is an example of an external failure cost?

Which category of costs includes salaries and developmental costs for product design?

Which of the following is an example of a hidden failure cost?

Which category of costs includes costs associated with defect cause and removal?

Which of the following is an example of an appraisal cost?

Which category of costs is incurred when products fail to meet quality requirements prior to the transfer of ownership to the customer?

Which of the following is an example of an external failure cost?

Which category of quality costs includes costs associated with the identification and correction of defects?

Which costing method tends to overcost high-volume items within a product type?

Which category of costs is incurred when products fail to meet quality requirements prior to the transfer of ownership to the customer?

Which costing method will make proportional allocations for more complex products?

Which of the following is an example of an appraisal cost?

Which category of costs includes salaries and developmental costs for product design?

Which of the following is an example of an internal failure cost?

Which category of quality costs includes costs associated with defect cause and removal?

What do quality costs reflect?

Which of the following is an example of a prevention cost?

Which category of quality costs includes costs associated with the inspection and testing of incoming materials?

Which cost component is associated with the costs of defects that occur after delivery to customers?

Which of the following is an example of an internal failure cost?

Which category of costs occurs during or after production but before the product is released to the customer?

Which of the following is an example of a hidden failure cost?

Which category of costs includes costs associated with defect cause and removal?

Which costing method tends to overcost high-volume items within a product type?

Which category of quality costs includes costs associated with the identification and correction of defects?

Which costing method will undercost more complex products?

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