Objective 19.4
1) Which of the following is an advantage of COQ measures?
A) They help managers aggregate costs to evaluate the tradeoffs of incurring prevention costs and appraisal costs to eliminate internal and external failure costs.
B) They detect and provide immediate short-run feedback on whether quality-improvement efforts are succeeding.
C) They forecast customer satisfaction and employee satisfaction, which are useful indicators of long-run performance.
D) They direct attention to financial processes that help managers identify the precise problem areas that need improvement. Answer: A
Diff: 3
Objective: 4
AACSB: Analytical thinking
2) Which of the following is an advantage of nonfinancial measures of quality?
A) They help managers aggregate costs to evaluate the tradeoffs of incurring prevention costs and appraisal costs to eliminate internal and external failure costs.
B) They detect and provide immediate short-run feedback on whether quality-improvement efforts are succeeding.
C) They focus managers' attention on how poor quality affects operating income.
D) They direct attention to financial processes that help managers identify the precise problem areas that need improvement. Answer: B
Diff: 3
Objective: 4
AACSB: Analytical thinking
3) Which of the following true of nonfinancial measures of quality?
A) They direct attention to financial processes that help managers identify the precise problem areas that need improvement.
B) They focus managers' attention on how poor quality affects operating income.
C) They assist in problem solving by comparing costs and benefits of different quality-improvement programs and by setting priorities for cost reduction.
D) They provide immediate short-run feedback on whether quality-improvement efforts are succeeding. Answer: D
Diff: 2
Objective: 4
AACSB: Analytical thinking
26
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4) An advantage of nonfinancial measures of quality include that they ________. A) focus managers' attention on how poor quality affects operating income
B) assist in problem solving by comparing costs and benefits of different quality-improvement programs and by setting priorities for cost reduction
C) are useful indicators of future long-run performance D) use certain statistical measures to justify their data Answer: C
Diff: 2
Objective: 4
AACSB: Analytical thinking
5) Which of the following is true of COQ measures?
A) They forecast customer satisfaction and employee satisfaction, which are useful indicators of long-run performance.
B) They focus managers' attention on how poor quality affects operating income.
C) They direct attention to financial processes that help managers identify the precise problem areas that need improvement.
D) They provide immediate short-run feedback on whether quality-improvement efforts are succeeding. Answer: B
Diff: 2
Objective: 4
AACSB: Analytical thinking
6) Without financial quality measures, ________.
A) customer satisfaction and employee satisfaction cannot be measured
B) the short-run effectiveness of nonfinancial quality measures is questionable C) cost-benefit analysis is not possible
D) quality problems might not be identified until it is too late Answer: C
Diff: 3
Objective: 4
AACSB: Analytical thinking
7) Without nonfinancial quality measures, ________. A) the operating income cannot be improved
B) the short-run effectiveness of financial quality measures is questionable C) the precise problem areas that need improvement cannot be identified D) quality problems might not be identified until it is too late Answer: D
Diff: 3
Objective: 4
AACSB: Analytical thinking
27
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8) COQ measures such as measures of customer satisfaction and employee satisfaction are useful indicators of long-run performance. Answer: FALSE
Explanation: Nonfinancial measures such as measures of customer satisfaction and employee satisfaction are useful indicators of long-run performance.
Diff: 1
Objective: 4
AACSB: Analytical thinking
9) Total costs of quality help managers aggregate costs to evaluate the tradeoffs of incurring prevention costs and appraisal costs to eliminate internal and external failure costs. Answer: TRUE
Diff: 1
Objective: 4
AACSB: Analytical thinking
10) Distribution of questionnaires to customers regarding product quality and improving the product on certain key areas based on the inferences drawn from the questionnaires is an example of a nonfinancial measure of quality. Answer: TRUE
Diff: 2
Objective: 4
AACSB: Analytical thinking
Objective 19.5
1) The amount of time from when a customer places an order for a product or requests a service to when the product or service is delivered to the customer is referred to as ________. A) manufacturing lead time B) delivery time
C) customer-response time D) a time driver Answer: C
Diff: 2
Objective: 5
AACSB: Analytical thinking
2) Customer-response time is ________.
A) the amount of time from when an order is ready to start on the production line to when the product or service is delivered to the customer
B) the amount of time it takes to deliver a completed order to a customer
C) the amount of time from when a customer places an order for a product or requests a service to when the product or service is delivered to the customer
D) the amount of time from when an order is ready to start on the production line to when it becomes a finished good Answer: C
Diff: 3
Objective: 5
AACSB: Analytical thinking
28
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3) The amount of time from when an order is ready to start on the production line to when it becomes a finished good is referred to as ________. A) manufacturing time B) time driver
C) customer-response time D) delivery time Answer: A
Diff: 2
Objective: 5
AACSB: Analytical thinking
4) Manufacturing cycle time is ________.
A) the amount of time it takes from when an order is ready to start on the production line to when the product or service is delivered to the customer
B) the amount of time it takes to deliver a completed order to a customer plus its waiting time
C) the amount of time it takes from when a customer places an order for a product or requests a service to when the product or service is delivered to the customer
D) the amount of time it takes from when an order is ready to start on the production line to when it becomes a finished good plus its waiting time Answer: D
Diff: 3
Objective: 5
AACSB: Analytical thinking
5) Which of the following is the mathematical expression for calculating manufacturing cycle efficiency(MCE)?
A) MCE = Manufacturing cycle time ÷ Value-added manufacturing time B) MCE = Manufacturing time ÷ Value-added manufacturing time C) MCE = Value-added manufacturing time ÷ Manufacturing cycle time D) MCE = Value-added manufacturing time ÷ Manufacturing time Answer: C
Diff: 2
Objective: 5
AACSB: Analytical thinking
6) Any factor where a change in the factor causes a change in the speed with which an activity is undertaken is referred to as ________. A) a time driver B) a cost driver
C) manufacturing lead time D) customer-response time Answer: A
Diff: 2
Objective: 5
AACSB: Analytical thinking
29
Copyright ? 2015 Pearson Education, Inc.
7) Which of the following is true of a bottleneck?
A) It occurs in an operation when the work to be performed approaches or exceeds the capacity available to do it.
B) It occurs in an operation when there is excess capacity to complete the work given. C) It is the uncertainty about when customers will order products or services.
D) It is the time taken by a manufacturing department to produce a finished product. Answer: A
Diff: 1
Objective: 5
AACSB: Analytical thinking
8) The time it takes the marketing department to specify to the manufacturing department the exact requirements of the customer's order is referred as ________. A) receipt time B) waiting time C) delivery time
D) manufacturing cycle time Answer: A
Diff: 2
Objective: 5
AACSB: Analytical thinking
9) Customer response time comprises of ________. A) manufacturing cycle time and delivery time only B) receipt time and manufacturing cycle time only
C) receipt time, manufacturing cycle time, and delivery time D) manufacturing time and delivery time only Answer: C
Diff: 2
Objective: 5
AACSB: Analytical thinking
10) The time from which a machine is setup for order till the product becomes a manufactured good is ________.
A) waiting time
B) manufacturing time
C) manufacturing cycle time D) customer-response time Answer: B
Diff: 1
Objective: 5
AACSB: Analytical thinking
30
Copyright ? 2015 Pearson Education, Inc.