1. In terms of quality control measures, scrap and rework costs are part of .

a. prevention costs


b. inspection costs


c. internal failure costs (Pg. 478)

d. external failure costs

2. Which part of the throughput formula provides information about the impact of equip-
ment downtime on overall productivity?

a. Productive capacity

b. Productive processing time (Pg. 477)
c. Yield

d. None of the above

3. Which of the following is most likely the cost driver for accounts payable expenses as-

sociated with processing supplier invoices?


a. Number of different parts purchased


b. Total price of purchases 


c. Number of suppliers used


d. Number of purchases made


e. All of the metrics listed above 


4. Move tickets are a control procedure designed to reduce the risk of

a. loss or destruction of production data
b. theft of inventory(Pg. 463)
c. disruption of operations
d. inappropriate allocation of overhead costs
5. At which stage of the production process can accountants contribute to significantly re-

ducing the cost of goods sold?


a. Product design


b. Planning and scheduling 


c. Production operations

d. None of the above 


6. MRP-II would most likely be used by a company that produces .

a. different grades of milk (e.g., whole, 2%, and skim)(Pg. 465)

b. toner cartridges for laser printers


c. toys based on a new movie 


d. all of the above

e. none of the above 


7. In terms of quality control measures, the costs associated with issuing credit memos to

customers who return defective products is part of .


a. prevention costs


b. inspection costs 


c. internal failure costs

d. external failure costs(Pg. 478)

e. none of the above 


8. Which control procedure would be most effective in reducing the risk of over- or under-
production?


a. Reviewing all changes to master data


b. Activity-based costing 


c. Production planning systems (Pg. 463)


d. Computer-integrated manufacturing


e. Reports that highlight the components of throughput