Free CIA Exam Braindumps
Certified Internal Auditor Exam Questions 536–540 (page: 109)

Updated On: 9-Feb-2026

The use of teams in total quality management TOM) is important because

  1. Well-managed teams can be highly creative and are able to address complex problems better than individuals can.
  2. Teams are quicker to make decisions, thereby helping to reduce cycle time.
  3. Employee motivation is higher for team members than for individual contributors.
  4. The use of teams eliminates the need for supervision, thereby alloying a company to become leaner and more profitable.

Answer(s): A

Explanation:

Teams can use the diverse knowledge and skills of all team members. Employee involvement means training and empowering employees to harness their creativity for problem solving. Quality control circles are used to obtain input from employees and to locate the best perspective on problem solving.



A means of limiting production delays caused by equipment breakdown and repair is to

  1. Schedule production based on capacity planning.
  2. Plan maintenance activity based on an analysis of equipment repair work orders.
  3. Pre-authorize equipment maintenance and overtime pa}.
  4. Establish a preventive maintenance program for all production equipment.

Answer(s): D

Explanation:

preventive maintenance program will reduce equipment breakdowns and repairs.



If a manufacturer has established a limit on the number of defects that are tolerable in the final assembly of its product, which of the following quality control procedures should be employed?

I). Inspect completed goods for compliance with established tolerances.
II). Review sales returns for defects not detected during the final inspection process.
III). Compare materials and machinery specifications with original product designs.
IV). Establish a quality circle that includes management and subordinates to discuss labor efficiency.

  1. I, III, and I.
  2. II and III only.
  3. I, II, and III.
  4. III and IV only.

Answer(s): C

Explanation:

Quality control procedures may be categorized according to the nature of the costs incurred. An organization incurs appraisal costs to ensure product quality. These costs include the costs of inspection, testing, and statistical quality control programs. An organization also should investigate the causes of sales returns, which represent an external failure cost. Furthermore, the organization should incur certain prevention costs, e.g., by reviewing equipment design and materials requirements.



Which statement best describes total quality management TOM)?

  1. TOM emphasizes reducing the cast of inspection.
  2. TOM emphasizes better statistical quality control techniques.
  3. TOM emphasizes doing each job right the first time.
  4. TOM emphasizes encouraging crass-functional teamwork.

Answer(s): C

Explanation:

TOM establishes quality as an organizational objective and views it as a major component of the organization's service to its customers. It emphasizes employee training and commitment, product/service design and production, and customer service. Ordinarily, the quality of a product or service is as important to customers as cast and timeliness. Superior product quality is not attained merely through more inspection, better statistical quality control, and cross-functional teamwork. Manufactures must make fundamental changes in the way they produce products and do each jab right the first time.



Quality cost indices are often used to measure and analyze the cost of maintaining or improving the level of quality. Such indices are computed by dividing the total cost of quality over a given period by some measure of activity during that period for example, sales dollars). The following cost data are available for a company for the month of March. The company's quality cost index is calculated using total cost of quality divided by sales dollars.

Sales US $400, 000
Direct materials cost 100, 000
Direct labor cost 80, 000
Testing and inspection cost 6, 400
Scrap and rework cost 16, 800
Quality planning cost 2, 800
Cost of customer complaints and returns 4, 000
The quality cost index for March is

  1. 7.5%
  2. 6.5%
  3. 22.0%
  4. 5.9%

Answer(s): A

Explanation:

The total cost of quality equals the sum of prevention costs quality planning), appraisal casts testing and inspection), internal failure casts scrap and rework), and external failure casts customer complaints and returns), or U $30, 000 $2, 800 + $6, 400 + $16, 800 + $4, 000). The quality cost index equals the total casts of quality divided by sales. Thus, the quality cast index for March is 7.5% U $80, 000 ­ U $400, 000).



Viewing page 109 of 342
Viewing questions 541 - 545 out of 1702 questions


Post your Comments and Discuss IIA CIA exam prep with other Community members:

AI Tutor AI Tutor 👋 I’m here to help!