Ch.18 Quiz

Instructions
Read the questions carefully.

This assessment is worth 100 points.

  1. Non-value added activities are those that do not add to a product's desirability.   (5 points)

      
      

  2. The process of using ABC to help reduce and eliminate non-valued activities is activity-based management.   (5 points)

      
      

  3. Target cost equals target price plus profit margin.   (5 points)

      
      

  4. "ISO 9000" certification requires a detailed audit and documentation of the processes and procedures a company has implemented for quality conformance.   (5 points)

      
      

  5. In a just-in-time manufacturing system, reliable vendor relationships are essential only if the prices they charge are the lowest possible.   (5 points)

      
      

  6. The suppliers and production component of the value chain would include all of the following costs except:   (5 points)

    a.  
    b.  
    c.  
    d.  

  7. Of the following activities performed by a manufacturer of roller blades, which are value-adding?   (5 points)

    a.  
    b.  
    c.  
    d.  

  8. The just-in-time manufacturing system:   (5 points)

    a.  
    b.  
    c.  
    d.  

  9. Just-in-time manufacturing systems are also known as:   (5 points)

    a.  
    b.  
    c.  
    d.  

  10. The primary objective of activity-based management is:   (5 points)

    a.  
    b.  
    c.  
    d.  

  11. Target costing is directed toward:   (5 points)

    a.  
    b.  
    c.  
    d.  

  12. The identification of a target price for a newly designed product or service is focused on:   (5 points)

    a.  
    b.  
    c.  
    d.  

  13. During which element of manufacturing cycle time is value added to products?   (5 points)

    a.  
    b.  
    c.  
    d.  

  14. The manufacturing efficiency ratio equals:   (5 points)

    a.  
    b.  
    c.  
    d.  

  15. Which of the following is not commonly used to measure product quality in a just-in-time system?   (5 points)

    a.  
    b.  
    c.  
    d.  

  16. Four categories of costs associated with product quality are:   (5 points)

    a.  
    b.  
    c.  
    d.  

  17. Which of the following is an example of the cost of quality?   (5 points)

    a.  
    b.  
    c.  
    d.  

  18. Which of the following is not a prevention cost?   (5 points)

    a.  
    b.  
    c.  
    d.  

  19. Media Products, Inc. is interested in producing and selling an improved widget. Market research indicates that customers would be willing to pay $100 for such a widget and that 50,000 units could be sold each year at this price. The current cost to produce the widget is estimated to be $75.

    Refer to the information above. If Media Products requires a 25% return on sales to undertake production, what is the target cost for the new widget?   (5 points)

    a.  
    b.  
    c.  
    d.  

  20. Media Products, Inc. is interested in producing and selling an improved widget. Market research indicates that customers would be willing to pay $100 for such a widget and that 50,000 units could be sold each year at this price. The current cost to produce the widget is estimated to be $75.

    Refer to the information above. Media has learned that a competitor plans to introduce a similar widget at a price of $90. If Media requires a 25% return on sales, what is the target cost for the new widget?   (5 points)

    a.  
    b.  
    c.  
    d.  



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