Page 450 - 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

• $170,000—Re-inspection and retest
• $45,000—Loss on disposition of surplus stock
• $4000—Vendor quality surveys
• $30,000—Rework

The total of the quality costs is:
a. $619,000
b. $574,000
c. $615,000
d. $570,000
112. 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
• $170,000—Re-inspection and retest
• $45,000—Loss on disposition of surplus stock
• $4000—Vendor quality surveys
• $30,000—Rework

The total failure cost is:
a. $550,000
b. $30,000
c. $350,000
d. $380,000

113. A goal of a quality cost report should be to:
a. get the best product quality possible.
b. be able to satisfy MIL-Q-9858A.
c. integrate two financial reporting techniques.
d. indicate areas of excessive costs.

114. The concept of quality cost budgeting:
a. involves budgeting the individual elements.
b. replaces the traditional profit and loss statement.
c. does not consider total quality costs.
d. considers the four categories of quality costs and their general
trends.
115. Sources of quality cost data do not normally include:
a. scrap reports.
b. labor reports.
c. salary budget reports.
d. capital expenditure reports.

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