Financial Perspective: Costs of Quality MCQ (Multiple Choice Questions) PDF - 122

MCQ 606: The costs incur for defective products, before their shipment to customers can be categorized as

1. prevention costs
2. external failure costs
3. appraisal costs
4. internal failure costs

MCQ 607: The costs that are incurred to prevent low quality goods production are classified as

1. costs of quality
2. costs of learning
3. costs of reengineering
4. costs of spoilage inventory

MCQ 608: The decisions made by company, which products to manufacture and sell and in what quantities, of many product lines are called

1. incremental decisions
2. outsource decisions
3. product mix decisions
4. in-source decisions

MCQ 609: The costs which are considered as expenses in the accounting period are also known as

1. inventory costs
2. period costs
3. timed costs
4. labor overheads

MCQ 610: If the target net income is $36000 and the tax rate is 40%, then the target operating income will be

1. $10,000
2. $20,000
3. $40,000
4. $60,000