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NEW QUESTION 51
A company records income from an investment in common stock when it does which of the following?
Answer: C
NEW QUESTION 52
In Year 2, a manufacturing company instituted a total quality management TQM) program producing the following report:
On the basis of this report, which one of the fallowing statements is most likely true?
Answer: B
Explanation:
TQM emphasizes the supplier's relationship with the customer and recognizes that everyone in a process is at some time a customer or supplier of someone else, either within or outside the organization. The costs of quality include costs of conformance and costs of nonconformance. Casts of conformance include prevention costs and appraisal inspection) costs. Nonconformance costs are composed of internal failure costs and external failure costs, such as lost opportunity. Conformance costs prevention and appraisal) increased substantially, whereas the nonconformance casts internal and external failure) decreased.
Hence, the increase in conformance casts resulted in a higher-quality product.
NEW QUESTION 53
What should the company focus on to achieve quality more economically?
Answer: B
Explanation:
Prevention attempts to avoid defective output. Prevention costs include preventive maintenance, employee training, review of equipment design, and evaluation of suppliers. Prevention is less costly than detection and correction of defective output.
NEW QUESTION 54
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