Business Management: Real World Applications & Connections

Chapter 20: Operations Control

Self-Assessment Quizzes



TRUE OR FALSE
Please answer the following questions as true or false.

1.

The salaries of support staff are not included in direct labor costs.
A)True
B)False
2.

Companies that fail to produce high-quality products are failing quality standards.
A)True
B)False
3.

Customer surveys might be used in a total quality management system.
A)True
B)False
FILL IN THE BLANKS
The following questions require you to find the correct answer that should appear in the blank.

4.

The partially finished goods that a company keeps in stock are considered _____.
A)deteriorated
B)indirect costs
C)inventory
D)obsolete
5.

The _____ is the number of units at which ordering costs equal holding costs.
A)economic order quantity
B)safety stock
C)physical inventory
D)fixed order quantity
6.

_____ makes quality the responsibility of all employees.
A)Quality control
B)Quality assurance
C)Quality inspection
D)Quality planning
CONNECT THE COMPONENTS OF QUALITY MANAGEMENT
Match the quality management process with the activity that corresponds to it.

7.

Quality control
A)Establishing a team to determine why a product does not meet quality standards.
B)Determining customer needs.
C)Comparing quality performance to quality standards.
8.

Quality improvement
A)Establishing a team to determine why a product does not meet quality standards.
B)Determining customer needs.
C)Comparing quality performance to quality standards.
9.

Quality planning
A)Establishing a team to determine why a product does not meet quality standards.
B)Determining customer needs.
C)Determining customer needs.
MULTIPLE CHOICE QUESTION

10.

What is obsolescence?
A)When inventory items deteriorate
B)When holding charges exceed interest charges
C)Both
D)Neither
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