Lesson 3.4.4

3.4.4 Making operational decisions: improving quality Quiz: AQA Business, Unit 4

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson 3.4.4, Making operational decisions: improving quality: 20 multiple choice questions for the AQA Business (7132), Unit 4: Operational management, written with Revision Ninja.

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The 20 questions

  1. What is the primary focus of quality control in a factory?

    • Training line workers
    • Preventing defect creation
    • Designing processes
    • Inspecting finished goods

  2. What is the primary objective of quality assurance in production?

    • Inspecting finished output
    • Preventing product defects
    • Sorting defective units
    • Scrapping faulty goods

  3. What is a primary focus of quality assurance in operations?

    • Fixing faulty output
    • Scrapping rejected items
    • Preventing defects
    • Inspecting finished goods

  4. What is a direct financial benefit of improving product quality?

    • Reduced tax liability
    • Lower wage rates
    • Lower supplier prices
    • Premium pricing capability

  5. What is a major financial difficulty when introducing new quality management systems?

    • High initial cost
    • Reduced lead time
    • Decreased staff morale
    • Lower unit costs

  6. Which of the following is a direct consequence of poor product quality?

    • Higher profit margins
    • Brand reputation damage
    • Lower buffer stock
    • Increased capacity utilisation

  7. What is a major legal consequence of severe product safety failures?

    • Higher dividends
    • Regulatory fines
    • Lower capital expenditure
    • Decreased wage costs

  8. A car plant tests each engine at the end of the line and rejects 2% of them. Which approach is this?

    • Quality planning
    • Quality control
    • Quality assurance
    • Supplier rating

  9. A batch of 10,000 units has a 3% defect rate, and each defective unit costs 12 to rework. What is the total rework cost?

    • 360
    • 1,200
    • 30,000
    • 3,600

  10. After introducing quality assurance, a firm's monthly returns fall from 500 to 200 items. Each return costs 15. What is the monthly saving?

    • 10,000
    • 7,500
    • 3,000
    • 4,500

  11. What immediate financial cost arises when a food manufacturer issues a product recall?

    • Marketing costs
    • Recall expenses
    • Interest payments
    • Fixed overheads

  12. How does purchasing higher-quality raw materials initially affect profit margins?

    • Reduces overhead costs
    • Increases profit margins
    • Eliminates variable costs
    • Squeezes profit margins

  13. Why is quality assurance often cheaper in the long term than quality control?

    • Reduces tax liabilities
    • Prevents costly rework
    • Requires no training
    • Eliminates all labour

  14. A firm samples 50 of 2,000 units and finds 4 defective. How many defective units are estimated in the whole batch?

    • 160
    • 400
    • 40
    • 80

  15. What usually happens to demand when a business cuts product quality to reduce costs?

    • Price elasticity disappears
    • Demand increases
    • Demand stays constant
    • Demand decreases

  16. Why is quality assurance preferable to quality control for protecting brand reputation?

    • Prevents customer exposure
    • Allows faulty output
    • Inspects finished goods
    • Requires no planning

  17. A factory with 25,000 units has a 4% defect rate. Each defect costs 8 to fix and 20 in lost margin. What is the total cost of defects?

    • 8,000
    • 36,000
    • 20,000
    • 28,000

  18. A firm spends 60,000 on quality assurance and saves 90,000 in defect costs. What is its net benefit?

    • 90,000
    • 60,000
    • 30,000
    • 150,000

  19. How can poor product quality directly harm external stakeholders such as customers?

    • Shorter lead times
    • Increased tax revenues
    • Product safety hazards
    • Higher dividend payouts

  20. Why might raising product quality fail to increase sales volume?

    • Eliminated competition
    • Unnoticed by customers
    • Increased market growth
    • Reduced unit costs

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