Free sample questions
2 questions from this set, shown in full with the correct answer and the reasoning behind it. Read them as a study resource.
Q1.A company compares itself against its two closest rivals:
The company's strategy is to serve customers who value responsiveness and choice. Which finding matters most to the strategic plan?- A.Rival 2 offers the lowest price of the three
- B.The company has the best warranty performance
- C.The company's price sits between the two rivals
- D.Rival 1 leads on both dimensions the strategy depends on✓ Correct answer
Explanation
An environmental analysis is read against the strategy that has been chosen, and on responsiveness and choice the company trails the rival it must beat by more than two to one. The warranty advantage is real and is the comfortable finding to dwell on, but it is a dimension the chosen strategy does not compete on.Reference: CMQ/OE BoK II
Q2.A company's cost of quality over three years, in thousands:
What does this pattern most strongly support?- A.Prevention spending is reducing total cost of quality✓ Correct answer
- B.Appraisal spending should now be increased
- C.Costs are being reclassified between categories
- D.External failure has become the dominant cost
Explanation
Prevention more than triples while both failure categories and appraisal fall, and the total drops by 300, so the increase is being repaid several times over. Reclassification is the alternative reading and is ruled out by the total falling rather than merely moving between rows.Reference: CMQ/OE BoK IV
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What this quiz covers
- Customer-Focused Organizations
- Leadership
- Management Elements and Methods
- Quality Management Tools
- Strategic Plan Development and Deployment
- Supply Chain Management
- Training and Development
Questions about this practice test
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