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NO.1 Which of the following is not required by ISO 9000 standards?
A. Establishment of a quality management system.
B. Onsite inspections by a registrar.
C. Consistent high quality products.
D. Creation of an internal audit system.
Answer: C
Explanation:
ISO 9000 is a set of generic standards for establishing and maintaining a quality system within an
entity. The standards provide no basis forjudging the quality of the end product. The marketplace
makes this determination. The objective of ISO 9000 standards is to ensure consistent quality.

NO.2 Which of the following costs of quality is a failure cost?
A. Costs of quality circles.
B. Contract penalty for delivery of nonconforming goods.
C. Costs of inspecting in-process items.
D. Systems development costs.
Answer: B

IIA-CIA-Part3 Simulator   
Explanation:
Failure costs are incurred after defective output has been removed from production. A contract
penalty for faulty goods is an example of an external failure cost.