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?

  • 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?

<p>Product or service requirements (C)</p> Signup and view all the answers

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

<p>Prevention costs (C)</p> Signup and view all the answers

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

<p>Appraisal costs (A)</p> Signup and view all the answers

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

<p>Failure costs (A)</p> Signup and view all the answers

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

<p>Quality costs (B)</p> Signup and view all the answers

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

<p>Prevention costs (C)</p> Signup and view all the answers

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

<p>Appraisal costs (D)</p> Signup and view all the answers

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

<p>The cost of calibrating measuring instruments (C)</p> Signup and view all the answers

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

<p>Appraisal costs (C)</p> Signup and view all the answers

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

<p>The cost of repairing nonconforming products (A)</p> Signup and view all the answers

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

<p>External failure costs (B)</p> Signup and view all the answers

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

<p>The cost of handling and replacing nonconforming products (D)</p> Signup and view all the answers

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

<p>Prevention costs (B)</p> Signup and view all the answers

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

<p>The cost of line downtime (A)</p> Signup and view all the answers

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

<p>Prevention costs (A)</p> Signup and view all the answers

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

<p>The cost of calibrating measuring instruments (B)</p> 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?

<p>Internal failure costs (A)</p> Signup and view all the answers

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

<p>Servicing commitments (C)</p> Signup and view all the answers

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

<p>Internal failure costs (B)</p> Signup and view all the answers

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

<p>Unit-based costing method (C)</p> 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?

<p>Hidden failure costs (A)</p> Signup and view all the answers

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

<p>Activity-based costing method (C)</p> Signup and view all the answers

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

<p>Hidden failure costs (C)</p> Signup and view all the answers

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

<p>Prevention costs (B)</p> Signup and view all the answers

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

<p>Hidden failure costs (A)</p> Signup and view all the answers

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

<p>Prevention costs (D)</p> Signup and view all the answers

What do quality costs reflect?

<p>The difference between actual cost and reduced cost (D)</p> Signup and view all the answers

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

<p>Cost of calibrating measuring instruments (A)</p> Signup and view all the answers

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

<p>Appraisal costs (D)</p> Signup and view all the answers

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

<p>External failure costs (A)</p> Signup and view all the answers

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

<p>Scrap and rework costs (C)</p> Signup and view all the answers

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

<p>Appraisal costs (B)</p> Signup and view all the answers

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

<p>Line downtime (A)</p> Signup and view all the answers

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

<p>Prevention costs (C)</p> Signup and view all the answers

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

<p>Full costing (D)</p> Signup and view all the answers

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

<p>Internal failure costs (D)</p> Signup and view all the answers

Which costing method will undercost more complex products?

<p>Direct costing (B)</p> Signup and view all the answers

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