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. Quality control is best described as:

    • Measuring the profitability of each product line
    • Checking finished products or outputs to detect and remove faulty items
    • Training staff to meet the firm's mission statement
    • Designing systems to prevent defects from ever occurring

  2. Quality assurance is best described as:

    • Setting the price of products to meet customer expectations
    • Inspection of products after production to remove defective goods
    • Holding inventory to protect against supplier failures
    • Systems and processes designed to prevent defects from occurring in the first place

  3. Which method of improving quality is an example of quality assurance?

    • Inspecting every item at the end of the production line
    • Introducing standardised procedures and staff training to prevent errors
    • Rejecting faulty batches from suppliers after delivery
    • Sampling output once a week to detect faults

  4. A benefit of improving quality is:

    • Less need for marketing, as customers will find the product themselves
    • Higher customer loyalty and possibly the ability to charge higher prices
    • Higher costs for customers because quality is expensive to produce
    • Elimination of all competition in the market

  5. A difficulty of improving quality is:

    • Quality improvements always reduce all costs immediately
    • Customers never notice changes in quality
    • Quality cannot be measured at all
    • The initial cost of new systems, training and equipment may be high

  6. A consequence of poor quality for a business could be:

    • Lower costs, because fewer checks are needed
    • Increased customer loyalty, because shoppers feel sympathy for the brand
    • Improved relationships with competitors who benefit from faults
    • Product recalls and damage to brand reputation, which can reduce future sales

  7. Which is a potential consequence of product safety failures for a business?

    • Suppliers gain more orders from the faulty product
    • Shareholders receive higher dividends because of the recall
    • Stakeholders gain because faulty goods lower prices
    • Legal action and fines from regulators, alongside lost customer trust

  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. A food manufacturer finds contamination after products have been sold and recalls them. What is the most likely short-term consequence?

    • Customers become more loyal because the firm is honest
    • Costs fall because inspection is no longer needed
    • Immediate recall costs and lost sales as customers stop buying
    • Sales rise as the news raises awareness of the brand

  12. Improving quality by buying better raw materials is most likely to create which difficulty?

    • Better raw materials eliminate the need for any staff
    • Higher input costs may squeeze profit margins unless prices rise
    • Better raw materials are never more expensive
    • Quality improvements cannot affect profit margins

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

    • QA eliminates all customer complaints automatically
    • QA involves no staff time or training costs
    • QC always costs more than any QA system
    • Preventing defects avoids the rework, returns and waste that inspection only detects

  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. A firm reduces quality to cut costs and its sales fall. Which principle is illustrated?

    • Poor quality damages customer loyalty, which can reduce demand
    • Costs fall only if quality is raised
    • Lower quality always increases demand because it is cheaper
    • Quality is irrelevant to demand in competitive markets

  16. Evaluate: what is the strongest argument that quality assurance is preferable to quality control for a business with a strong brand?

    • Brands never suffer from quality problems
    • QA eliminates the need for any product testing
    • QA protects the brand by preventing defects reaching customers, while QC can only detect faults already made
    • QC is illegal for businesses with strong brands

  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. Evaluate: why can poor quality harm stakeholders beyond the business itself?

    • Faulty products can injure customers and damage suppliers' reputations, creating wider social and legal consequences
    • Poor quality affects only shareholders' dividends
    • Customers benefit from cheaper goods that are of poor quality
    • Suppliers gain orders from faulty products

  20. Evaluate: why might a firm's quality improvements fail to raise sales even though its defects fall?

    • Fewer defects always reduce sales because fewer customers complain
    • Falling defects raise costs by the same amount as the reduction
    • Customers never judge quality, so sales cannot be affected
    • Customers may not notice or value the change, or rivals may match it, so the gain is not reflected in demand

All AQA Business quizzes