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.