Business Quality Management Quiz II

When maintaining an inventory of supplies, it helps a business to?

• Locate vendors

• Evaluate processes

• Operate efficiently

• Establish marketing goals

When a customer returns a defective product for a refund, it’s a(n) __________ cost.

• internal failure

• prevention

• appraisal

• external failure

Tim needs Abby to provide a status report so he can review inventory levels. After Tim reviews the inventory report, he must tell Kayla which items the business needs so she can contact the appropriate vendors to order stock. To achieve the business’s goal of maintaining adequate inventory levels, each employee must perform the tasks in a/an:

• flexible order

• reverse order

• informal order

• sequential order

What is the potential benefit to a business that continuously takes action to improve the quality of its goods and services?

• increased product options

• increased premiums

• higher demand

• higher costs

An effective way to prioritize work is to categorize tasks in:

• alphabetical order

• order of importance

• numerical sequence

• relation to enjoyment level

Businesses develop a quality culture by a combination of continual improvement and:

• goodwill

• teamwork

• research

• security

Which presents serious security risks that managers must monitor and control?

• employees

• marketing

• production of goods

• technology

One reason that companies strive to optimize their supply chain is to:

• lower costs

• reduce defects

• increase inventory

• increase vendors

Anastasia drives a truck that transports Nike shoes from the production plant to retail stores. The goods on the truck are:

• safety inventory

• transit inventory

• work-in-process inventory

• maintenance and repair inventory

A business orders 10% more widgets than it needs because the supply of and the demand for widgets have been difficult to forecast in recent months. Which type of inventory is the business using?

• buffer

• transit

• perpetual

• customary