CMQ-OE

CMQ-OE practice questions, page 10 of 29, with answer review and explanations.

Question 46

Reasons for building an economic case for quality may include: I: The case expresses quality in the language of management. II: The approach justifies quality initiatives in dollars and cents. III: The Sarbanes-Oxley Act requires it. IV: Quality is typically treated as a cost rather than as an investment. V: The economic case for quality allows for comparison of it with other major investments or projects.

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

Question 47

The budgets of most internal staff and operations functions do not include figures for: I: Cash received. II: Capital expenditures. III: Short-term liabilities. IV: Payroll expenses.

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

Question 48

Based only on the following data, which answer is correct? Purchased 12 delivery trucks for a total of $360,000 Estimated the payback from an ISO 9000 QMS project at $1,200,000 Net income for the year is $3,600,000 Spent $400,000 on implementing the ISO 9001-based QMS

  1. ROI is $3: 1 RONA is $10: 1
  2. ROI is 33% RONA is $9: 1
  3. ROI is 30% RONA is $10: 1
  4. ROI is $3: 1 RONA is $9: 1

Question 49

Assessing and identifying exposure to risks should: I: Be done prior to investing in a major capital expenditure. II: Be a continual process. III: Be undertaken as part of the feasibility analysis prior to purchasing another business. IV: Include financial, physical, safety, security, health, product liability, and proprietary information risk exposures.

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

Question 50

Which of the following are methods for mitigating risks? I: Eliminate the condition that may cause a loss to occur II: Establish contingency plans - III: Obtain insurance to cover some of the potential risk IV: Self-insure

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