BM II 1.01 Review

Match the following types of cost

• Prevention Cost

• Costs related to planning and implementing quality measures to avoid defective products.

• External
  Failure Cost

• Costs incurred when defective products reach customers.

• Internal Failure Cost

• Costs incurred when defective products are detected before reaching customers.

• Appraisal Cost

• Costs associated with inspecting and catching defective products quickly.

Explain how feedforward control can be beneficial in a manufacturing process.

• It helps in identifying defects after production

• It allows for adjustments before the production process begins

• It monitors performance during production

• It provides feedback after production is complete

A company incurs costs to inspect products before they are shipped to customers. What type of costs are these?

• Prevention Costs

• Internal Failure Costs

• Appraisal Costs

• External Failure Costs

How does a break-even analysis assist a business in strategic planning?

• It helps when determining the level at which revenues equal total costs

• It determines the profitability of individual products

• It forecasts future cash flows

• It evaluates employee performance

What is the difference between a warranty and a guarantee?

• A warranty is a promise to refund, while a guarantee is a promise to repair

• A warranty is a promise to repair or replace, while a guarantee is a promise to refund

• A warranty is a legal obligation, while a guarantee is optional

• A warranty is for a limited time, while a guarantee is forever

Why is sustainability important for long-term business viability?

• It reduces immediate costs

• It manages financial, social, and environmental risks

• It increases short-term profits

• It focuses solely on environmental concerns

Which type of control involves monitoring performance after it has occurred?

• Feedforward Control

• Concurrent Control

• Feedback Control

• Managerial Control

Discuss the role of corrective action in managerial control.

• It sets new performance standards

• It addresses variances between actual performance and standards

• It eliminates the need for performance monitoring

• It increases production speed

The type of cost a company incurs when defective products reach customers.?

• Prevention Costs

• Internal Failure Costs

• Appraisal Costs

• External Failure Costs

What is the main focus of cash flow analysis in a business?

• To determine the profitability of the business

• To assess the amount of cash available at any given time

• To evaluate the company's assets and liabilities

• To calculate the company's tax obligations