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Just-In-Time System; Product Quality Cost; Incremental Analysis / Cost

1. Which of the following is not commonly used to measure product
quality in a just-in-time system?
a. Defects per million.
b. Merchandise returns.
c. Manufacturing efficiency ratio.
d. Warranty claims.

2. Four categories of costs associated with product quality are:
a. External failure, internal failure, prevention, and carrying.
b. External failure, internal failure, prevention, and appraisal.
c. External failure, internal failure, training, and appraisal.
d. Warranty, product liability, prevention, and training.

3. Incremental analysis rarely requires the decision maker to exercise
judgment.
a. True
b. False

4. Complementary products are similar products that serve the same
exact function.
a. True
b. False

5. All incremental revenue or incremental costs are relevant.
a. True
b. False

6. Opportunity costs are not recorded in the accounting records.
a. True
b. False

Solution Preview

1. Which of the following is not commonly used to measure product
quality in a just-in-time system?
c. Manufacturing efficiency ratio.

2. Four ...

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