CHAPTER 19 QUIZ
1. The four cost categories in a cost of quality program are
a. product design, process design, internal success, and external success.
b. prevention, appraisal, internal failure, and external failure.
c. design, conformance, control, and process.
d. design, process specification, on-time delivery, and customer satisfaction.
2. Which of the following is not a nonfinancial performance measure for customer
satisfaction?
a. Number of defective units shipped to customers as a percentage of the total units of
product shipped
b. Number of customer complaints
c. On-time delivery
d. Number of defects for each product line
3. __________ is a formal means of distinguishing between random and nonrandom
variation in an operating process.
a. Statistical process control (SPC)
b. A Pareto diagram
c. A cause-and-effect diagram
d. A fishbone diagram
4. Nonfinancial measures for internal business process quality performance include all but
which of the following?
a. Employee empowerment
b. Process yields
c. Feedback
d. Product defect levels
5. A key question in relevant cost and relevant revenue analysis is:
a. By how much can sales be increased and costs reduced?
b. What purpose is best served for cost allocation and which criterion is most appropriate?
c. How will total costs and total revenues change under each alternative?
d. What are the amounts of incremental costs and incremental revenues under each
alternative?
6. An advantage of financial cost of quality measures is that they
a. are often easy to quantify and understand.
b. provide immediate short-run feedback on whether quality improvement efforts have, in
fact, succeeded in improving quality.
c. direct attention to physical processes and therefore focus attentions on the precise
problem areas needing improvement.
d. provide a single, summary measure of quality performance.
7. The amount of time between when a customer places an order for a product or requests
a service to when the product or service is delivered to that customer is called
a. customer-response time.
b. order receipt time.
c. order delivery time.
d. manufacturing lead time.
8. Delays in customer-response time occur because of the
a. uncertainty about when customers will order products.
b. unused capacity that impedes average manufacturing time.
c. customers’ response in paying invoices on time.
d. overemphasis on measuring time drivers.
9. Throughput margin measures
a. the amount of investment in inventories.
b. revenues minus operating costs.
c. revenues minus direct material costs of goods sold.
d. bottleneck revenues.
10. Which of the following is not one of the steps in managing bottlenecks under the
theory of constraints?
a. Identify the bottleneck resource by searching for resources with large quantities of
inventory waiting to be worked on.
b. Increase the efficiency and capacity of the nonbottleneck resources.
c. Subordinate all nonbottleneck operations to the bottleneck operation.
d. Increase the efficiency and capacity of the bottleneck operation.
CHAPTER 19 QUIZ SOLUTIONS