Question 1

What would be the total prevention cost appearing on the quality cost report?

Accepted Answer

A)  $145,000
B)  $75,000
C)  $93,000
D)  $76,000

Question 2

ISO 9000 standards were established to make sure that all consumer products incorporate certain safety features.

Accepted Answer

A) True 
 B)False

Question 3

An increase in appraisal costs will usually result in an increase in:

Accepted Answer

A)  prevention costs.
B)  internal failure costs.
C)  external failure costs.
D)  opportunity costs.

Question 4

Quality of conformance refers to the extent to which a product offered by one company is similar to products offered by other companies.

Accepted Answer

A) True 
 B)False

Exam 4: Cost of Quality

ISO 9000 standards were established to make sure that all consumer products incorporate certain safety features.