ch19 sample questions

Topics: Costs, Variable cost, Manufacturing Pages: 8 (1109 words) Published: November 9, 2014
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CHAPTER 19!
Sample Exam Questions!

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.!

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2. Which of the following is not a non-financial 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!

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4. Non-financial measures for internal quality performance include all but which of the following?! A. Employee empowerment!
B. Process yields!
C. Feedback!
D. Product defect levels!

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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 solution?! 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.!

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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.!

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9. Throughput contribution measures!
A. the amount of investment in inventories.!
B. revenues minus operating costs.!
C. revenues minus direct materials cost of goods sold.!
D. bottleneck revenues.!

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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 non-bottleneck resources.! C. Subordinate all non-bottleneck operations to the bottleneck operation.! D. Increase the efficiency and capacity of the bottleneck operation.!

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Answer the following 2 questions using the information below:! The tool crib at a large manufacturing company is responsible for providing tools to the factory workers on demand. The tool crib has a variable demand. Historically, its demand has ranged from 300 to 500 small tools per day with an average of 400. Diane, the tool crib attendant, works eight hours a day, five days a week. Each order is for one small tool and each small tool takes Diane 1 minute to retrieve from the bins.!

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11. What is the average waiting time, in minutes? !
A. 1!
B. 1.5!
C. 2.5!
D. 3.5!

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12. What is the cycle time for an order? !
A. 1 minutes per tool!
B. 1.5 minutes per tool!
C. 2.5 minutes per tool !
D. 3.5 minutes per tool!

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Answer the following 5 questions...
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