Page 449 - The Handbook for Quality Management a Complete Guide to Operational Excellence

436 A p p e n d i x D S i m u l a t e d C e r t i f i c a t i o n E x a m Q u e s t i o n s 437

106. The quality cost of writing instructions and operating procedures for
inspection and testing should be charged to:
a. appraisal costs.
b. internal failure costs.
c. prevention costs.
d. external failure costs.
107. When analyzing quality costs, a helpful method for singling out the
highest cost contributors is:
a. a series of interviews with the line foreman.
b. the application of the Pareto theory.
c. an audit of budget variances.
d. the application of break-even and profit volume analysis.

108. Included as a “prevention quality cost” would be:
a. salaries of personnel engaged in the design of measurement and
control equipment that is to be purchased.
b. capital equipment purchased.
c. training costs of instructing plant personnel to achieve production
standards.
d. sorting of nonconforming material that will delay or stop production.

109. The modern concept of budgeting quality costs is to:
a. budget each of the four segments: prevention, appraisal, internal
failure, and external failure.
b. concentrate on external failures; they are important to the business
since they represent customer acceptance.
c. establish a budget for reducing the total of the quality costs.
d. reduce expenditures on each segment.

110. The percentages of total quality cost are distributed as follows:
• Prevention: 2 percent
• Appraisal: 33 percent
• Internal failure: 35 percent
• External failure: 30 percent
We can conclude:

a. expenditures for failures are excessive.
b. nothing.
c. we should invest more money in prevention.
d. the amount spent for appraisal seems about right.
111. Assume that the cost data available to you for a certain period are
limited to the following:
• $20,000—Final test
• $350,000—Field warranty costs

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