Reference no: EM13379701

1. Indicate the best answer for each question in the space provided.

1 Examples of value-added activities include all of the following except:

a Product design.

b Material movement.

c Assembly activities.

d Establish an effective distribution network.

   2 Of the following components of total quality cost, which is most damaging to a company attempting to achieve a reputation as a world-class manufacturer?

a Prevention costs.

b Appraisal costs.

c Internal failure costs.

d External failure costs

   3 Of the following processes, which is chiefly concerned with products and services that have not yet been developed?

a Just-in-time manufacturing.

b Activity-based management.

c Target costing.

d Total quality management.

   4 For a furniture manufacturer, which of the following activities could not be eliminated without changing the customer's perception of the product's desirability?

a Inspection of incoming shipments of wood and fabrics.

b Movement of work-in-process from one work station to another.

c Set-up of machinery to produce different pieces of furniture.

d Reducing the product's distribution network.

   5 The cost borne by the customer of disposing of nickel-cadmium batteries is a component of the batteries':

a Life-cycle cost.

b Overhead cost.

c Cost of quality.

d Direct production cost.