E5 Cost analysis, constraints and sustainability

Which is a prevention cost in the cost of quality?

• 1 Staff training in quality
• 2 Warranty claims
• 3 Scrap
• 4 Final inspection

Customer returns and warranty claims are:

• 1 Internal failure costs
• 2 Prevention costs
• 3 Appraisal costs
• 4 External failure costs

Scrap and rework found before delivery are:

• 1 Environmental costs
• 2 Prevention costs
• 3 Internal failure costs
• 4 External failure costs

The potential cost of cleaning up contamination in the future is an environmental cost of which category?

• 1 Conventional
• 2 Hidden
• 3 Reputational
• 4 Contingent

Waste disposal costs that are included in general overheads are:

• 1 Contingent costs
• 2 Reputational costs
• 3 Hidden environmental costs
• 4 Conventional costs

The Theory of Constraints says that output is limited by:

• 1 The bottleneck
• 2 The number of products
• 3 The largest customer
• 4 The cheapest resource

Maximise 5x + 4y with machine time 2x + y <= 100 and labour x + 2y <= 80. What is the maximum contribution?

• 1 $300
• 2 $250
• 3 $280
• 4 $160

In the same problem (maximise 5x + 4y with 2x + y <= 100 and x + 2y <= 80), what is the shadow price of a machine hour?

• 1 $4
• 2 $2
• 3 $1
• 4 $5