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Contemporary Management Accounting (200108) Chapter 16 Test Bank

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Sandra Watson
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Western Sydney University

Contemporary Management Accounting (200108)

which of the following is not one of the costs of quality​ categories?

1. Which statement is incorrect?
A. Total quality management (TQM) relates only to the manufacturing processes.
B. TQM is customer-driven.
C. TQM focuses on the flow of activity across the organisation.
D. Continuous improvement is a key element of TQM.
2. Which of the following is not a type of cost of quality?
A. External failure cost
B. Productive inefficiency cost
C. Prevention cost
D. Appraisal cost
3. Internal failure costs refer to costs incurred:
A. in determining whether defects exist.
B. because defective products or services are delivered to customers.
C. in determining customer demand.
D. when defective products or services are detected before leaving the business.
4. External failure costs refer to costs incurred:
A. in preventing defects.
B. in determining whether defects exist.
C. because defective products or services are delivered to customers.
D. when defective products or services are detected before leaving the business.
5. Appraisal costs refer to costs incurred:
A. in preventing defects.
B. in determining whether defects exist.
C. because defective products or services are delivered to customers.
D. in determining customer demand.
6. Prevention costs refer to costs incurred:
A. in preventing defects.
B. because defective products or services are delivered to customers.
C. in determining customer demand.
D. when defective products or services are detected before leaving the business.
7. Quality of conformance refers

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Contemporary Management Accounting (200108) Chapter 16 Test Bank

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