Question about Quality costs
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The Door Company manufactures doors. Classify each of the following quality costs as prevention costs, appraisal costs, internal failure costs, or external failure costs.
a. Retesting of reworked products quality costs
b. Downtime due to quality problems internal failure costs
c. Analysis of the cause of defects in production prevention costs
d. Depreciation of test equipment appraisal costs
e. Warranty repairs quality costs
f. Lost sales arising from a reputation for poor quality internal failure costs
g. Quality circles quality costs
h. Rework direct manufacturing labor & overhead external failure costs
i. Net cost of spoilage internal failure costs
j. Technical support provided to suppliers quality costs
k. Audits of the effectiveness of the quality system prevention costs
l. Plant utilities in the inspection area appraisal costs
m. Reentering data because of keypunch errors internal failure costs
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Solution Summary
The solution explains the classification of given costs such as prevention costs, appraisal costs, internal failure costs, or external failure costs. 187 words with a source linked.
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"Prevention Costs - Generally the most effective way to manage quality costs is to avoid having defects in the first place. It is much less costly to prevent a problem from ever happening than it is to find and correct the problem after it has occurred. Prevention costs support activities whose purpose ...
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