Auditing and Assurance Services (16th Edition)
16th Edition
ISBN: 9780134065823
Author: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Chris E. Hogan
Publisher: PEARSON
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Question
Chapter 26, Problem 18.3MCQ
To determine
Identify the option which helps in preventing from the breakdown and repairs of equipment.
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Classify the following items as per Total Quality Cost:
Reporting & recording of defects:
Storing and disposing waste:
Procedure verification:Appraisal Costs
Training to employees:
Warranty repairs:
An example of a staff management function would be
A. determining that new equipment is required.
B. managing production.
C. preparing operating cost estimates for proposed new equipment.
D. ensuring that environmental standards are met.
E. being responsible for attaining a set level of plant income.
A number of activities that are part of a company's quality control system are listed below:
Required:
1. Classify the costs associated with each of these activities into one of the following categories: prevention cost, appraisal cost,
internal failure cost, or external failure cost.
Prevention Appraisal
Cost
Internal
Failure
External
Failure
Cost
Activities
Cost
Cost
a.
Product testing
b
Product recalls
C.
Rework labor and overhead
d.
Quality circles
e
Downtime caused by defects
f.
Cost of field servicing
g. Inspection of goods
Quality engineering
h.
i. Warranty repairs
j
Statistical process control
k.
Net cost of scrap
Depreciation of test equipment
m.
Returns and allowances arising from poor quality
n.
Disposal of production defects
O.
Technical support to suppliers
р.
Systems development
q.
Warranty replacements
r. Field testing at customer site
Quality training
S.
Chapter 26 Solutions
Auditing and Assurance Services (16th Edition)
Ch. 26 - Prob. 1RQCh. 26 - Prob. 2RQCh. 26 - Prob. 3RQCh. 26 - Prob. 4RQCh. 26 - Prob. 5RQCh. 26 - Prob. 6RQCh. 26 - Prob. 7RQCh. 26 - Prob. 8RQCh. 26 - Prob. 9RQCh. 26 - Prob. 10RQ
Ch. 26 - Prob. 11RQCh. 26 - Prob. 12RQCh. 26 - Prob. 13RQCh. 26 - Prob. 14RQCh. 26 - Prob. 15RQCh. 26 - Prob. 16.1MCQCh. 26 - Prob. 16.2MCQCh. 26 - Prob. 16.3MCQCh. 26 - Prob. 17.1MCQCh. 26 - Prob. 17.2MCQCh. 26 - Prob. 17.3MCQCh. 26 - Prob. 18.1MCQCh. 26 - Prob. 18.2MCQCh. 26 - Prob. 18.3MCQCh. 26 - Prob. 19.1MCQCh. 26 - Prob. 19.2MCQCh. 26 - Prob. 19.3MCQCh. 26 - Prob. 20DQPCh. 26 - Prob. 21DQPCh. 26 - Prob. 22DQPCh. 26 - Prob. 23DQPCh. 26 - Prob. 24DQPCh. 26 - Prob. 25DQP
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Which of the following would be the most appropriate basis for allocating the costs of plant insurance that covers equip-ment theft and damage? a. Direct labor hours.b. Value of equipment.c. Machine hours.d. Square feet of plant space.arrow_forwardWhich of the following is not a prevention cost? a. testing finished products b. design engineering c. operator training d. preventive maintenancearrow_forwardA number of activities that are part of a company's quality control system are listed below: Required: 1. Classify the costs associated with each of these activities into one of the following categories: prevention cost, appraisal cost, internal failure cost, or external failure cost. 2-a. Which type of costs are incurred to keep poor quality of conformance from occurring? 2-b. Which type of costs are incurred because poor quality of conformance has occurred? Complete this question by entering your answers in the tabs below. Required 1 Required 2a Required 2b Classify the costs associated with each of these activities into one of the following categories: prevention cost, appraisal cost, internal failure cost, or external failure cost. Activities a. Product testing b. Product recalls c. Rework labor and overhead d. Quality circles e. Downtime caused by defects f. Cost of field servicing g. Inspection of goods h. Quality engineering i. Warranty repairs j. Statistical process control…arrow_forward
- Answer classify with explanationarrow_forwardIdentify the material loss, which may be re-cycled for production process. Select one: a) Defectives b) Wastearrow_forwardWhich of the following is a prevention cost? a. Inspection of materials. b. Continuing supplier verification. c. Prototype inspection. d. Recalls.arrow_forward
- Identify the material loss, which may be re-cycled for production process. Select one: Defectives Waste damage Lossarrow_forwardIdentify important internal control activities present in a properly designed system to mitigate the risk of material misstatements for each relevant assertion in the production cycle.arrow_forwardThe theory of constraints suggests that the improvement efforts should usually be focused on: a. Work centers that are not constraints b. The work center that is the constraint c. The work center with the highest total cost. d. The work center with the most obsolete equipment.arrow_forward
- (Appendix 11A) Which of the following would be classified as an external failure cost on a quality cost report? Multiple Choice Repairs and replacements beyond the warranty period. Quality engineering. Systems development. Quality training.arrow_forwardThe risks associated with the company’s conversion cycle are: a)Material usage is not properly controlled. b)Labour hoursmay be inaccurately recorded. c)Potential for theft of raw materials. d)General ledger accounts may be inaccurately maintained. Explain each of the risk associated with conversion cycle briefly?arrow_forwardA number of activities that are part of a company's quality control system are listed below: Required: 1. Classify the costs associated with each of these activities into one of the following categories: prevention cost, appraisal cost, internal failure cost, or external failure cost. Prevention Appraisal Cost Internal Failure Cost External Failure Cost Activities Cost a. Product testing b. Product recalls c. Rework labor and overhead d. Quality circles e. Downtime caused by defects f. Cost of field servicing 9 Inspection of goods h. Quality engineering Warranty repairs j Statistical process control k. Net cost of scrap L Depreciation of test equipment m. Returns and allowances arising from poor quality n. Disposal of production defects o. Technical support to suppliers p. Systems development q. Warranty replacements r. Field testing at customer site s. Quality training 2-n Which tune of costs are incurred in an effort to keen noor auality of conformance from occuirring?arrow_forward
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