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Costs of Quality

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Costs of quality during the current period:

Downtime $1,500
Inspection 1,000
Product design 4,000
Reliability testing upon completion of production 2,500
Restocking and packaging 1,500
Training 3,000
Warranty repairs and replacements 2,500
Total costs of quality $16,000

How much of the costs were prevention and appraisal costs?

Prevention Appraisal
A) $4,000 1,000
B) 3,000 1,000
C) 7,000 3,500
D) 3,000 2,500

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Solution contains calculation cost of prevention and cost of appraisal.

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Prevention cost = Product ...

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