98) When considering customer needs and wants, only financial measures can be used because they are

easily measured.

98)

 

 

99) The financial cost of quality measures serves as a common denominator for evaluating trade-offs

among prevention costs and failure costs.

99)

 

 

100) A cause-and-effect diagram is used to help identify potential causes of defects. 100)

 

 

101) The costs relating to new materials testing are classified as appraisal costs. 101)

 

 

102) Costs of quality (COQ) reports usually do not consider opportunity costs. 102)

 

 

103) Most companies spend a large amount of money measuring the financial costs of design quality. 103)

 

 

32

104) An example of a non-financial balanced scorecard measure concerning internal business processes

would be the percentage of products that fail soon after delivery.

104)

 

 

105) When a firm has a bottleneck machine, a good way to manage the bottleneck is to make sure that

prior machines produce more units for the bottleneck machine to increase its throughput.

105)

 

 

106) Two important drivers of time are limited capacity and bottlenecks. 106)

 

 

107) When considering the theory of constraints, OPERATING COSTS refer to all costs involved in the

manufacturing process.

107)

 

 

 

 

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