Question

Classify each of the following as Prevention costs, Appraisal costs, Internal failure costs, or External failure...

Classify each of the following as Prevention costs, Appraisal costs, Internal failure costs, or External failure costs

______________   a. Retesting of reworked products

______________   b. Downtime due to quality problems

______________   c. Analysis of the cause of defects in production

______________   d. Depreciation of test equipment

______________   e. Warranty repairs

______________   f. Lost sales arising from a reputation for poor quality

______________   g. Quality circles

______________   h. Rework direct manufacturing labor and overhead

______________   i.   Net cost of spoilage

______________   j.   Technical support provided to suppliers

______________   k. Audits of the effectiveness of the quality system

______________   l.   Plant utilities in the inspection area

______________   m. Reentering data because of keypunch errors

Homework Answers

Answer #1

Part a) Retesting of reworked------- INTERNAL FAILURE COSTS

part b) Dowtime due to quality problems------- INTERNAL FAILURE COSTS

Part c) Analysis of cause of defects in production------APPRAISAL COSTS

part d) Depreciation of test equipment--------- APPRAISAL COSTS

Part e)Warranty repairs----- EXTERNAL FAILURE COSTS

Part f)lost sales arising from reputation for bad quality------EXTERNAL FAILURE COSTS

Part g) Quality Circles------ PREVENTION COSTS

Part h) Reqork direct manufacturing labour and overhead------- INTERNAL FAILURE COSTS

Part i)Net cost of spoilage------- INTERNAL FAILURE COSTS

PART J) Technical support provided to suppliers------ PREVENTION COSTS

part k)Audit of effectiveness of quality system------- PREVENTION COSTS

part l)plant utilities in inspection area------APPRAISAL COSTS

part m)Reentering data because of key punch errors----- INTERNAL FAILURE COSTS

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