Question 1. Which of the following is not commonly used to measure product quality in a just-in-time system?
a. Defects per million.
b. Merchandise returns.
c. Manufacturing efficiency ratio.
d. Warranty claims.
Question 2. Four categories of costs associated with product quality are:
a. External failure, internal failure, prevention, and carrying.
b. External failure, internal failure, prevention, and appraisal.
c. External failure, internal failure, training, and appraisal.
d. Warranty, product liability, prevention, and training.
Question 3. Incremental analysis rarely requires the decision maker to exercise judgment.
a. True
b. False
Question 4. Complementary products are similar products that serve the same exact function.
a. True
b. False
Question 5. All incremental revenue or incremental costs are relevant.
a. True
b. False
Question 6. Opportunity costs are not recorded in the accounting records.
a. True
b. False