Auditing and Assurance Services (16th Edition)
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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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.
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