P2 Exam Question 26
A manufacturing company has recently introduced a Total Quality Management (TQM) system. The company has invested heavily in the education and training of its staff, in addition to implementing new product design engineering. There is a plan to sample units from each batch of products manufactured to test for errors, although this has not yet been implemented due to budget constraints.
The company is experiencing high levels of customer complaints, with many faulty units being returned by the customer for refund or replacement. Sales revenue has fallen recently, mainly due to negative press coverage linked to dissatisfied customers.
Select the statement MOST likely to apply.
The company is experiencing high levels of customer complaints, with many faulty units being returned by the customer for refund or replacement. Sales revenue has fallen recently, mainly due to negative press coverage linked to dissatisfied customers.
Select the statement MOST likely to apply.
P2 Exam Question 27
Which of the following statements are correct with regard to responsibility centres?
Select ALL that apply.
Select ALL that apply.
P2 Exam Question 28
An organization wishes to achieve cost reductions for a product it already has in production without affecting the customer's perception of the product.
It has decided to carry out a systematic examination of the factors affecting the cost of the product in order to identify ways of achieving the specified purpose at lower cost while maintaining the required standard and quality.
Which of the following correctly identifies the activity that the organization is undertaking?
It has decided to carry out a systematic examination of the factors affecting the cost of the product in order to identify ways of achieving the specified purpose at lower cost while maintaining the required standard and quality.
Which of the following correctly identifies the activity that the organization is undertaking?
P2 Exam Question 29
A not-for-profit organization measures performance using the three Es.
If the organization has been acquiring the resources it needs as cheaply as possible it should be described as having been:
If the organization has been acquiring the resources it needs as cheaply as possible it should be described as having been:
P2 Exam Question 30
An investment centre manager is considering the purchase of a new machine. If purchased, the new machine would replace an existing one that is used to manufacture one of the investment centre's existing products.
The new machine would incur $800 per month additional running costs; this includes $300 per month of additional depreciation.
The new machine would save on direct labor time. This means that the fixed production overhead absorbed by the product on the basis of direct labor hours would reduce by $100 per month.
What is the total cost of the above that is relevant to the decision to purchase the machine?
The new machine would incur $800 per month additional running costs; this includes $300 per month of additional depreciation.
The new machine would save on direct labor time. This means that the fixed production overhead absorbed by the product on the basis of direct labor hours would reduce by $100 per month.
What is the total cost of the above that is relevant to the decision to purchase the machine?