6. Given the following cost information for DeltaCorps Inc., calculate the flowing: Internal failure costs, External failure costs, Appraisal costs and Prevention costs. Cost items Annual cost in $ Product Warranty & Repairs Continuous Process Improvement System (Kaizen) Scrap and Discard of defective products Non-destructive testing of products Rework labor Wages of quality test engineers Six Sigma training Supplier quality inspection Destructive product testing & inspection lab fees ISO 9001 Quality System implementation Product Recall and replacement 50,000 80,000 12,000 35,000 12,000 25,000 100,000 40,000 80,000 250,000 45,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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6. Given the following cost information for DeltaCorps Inc., calculate the flowing:
Internal failure costs, External failure costs, Appraisal costs and Prevention costs.
Cost items
Annual cost in $
Product Warranty & Repairs
Continuous Process Improvement System (Kaizen)
Scrap and Discard of defective products
Non-destructive testing of products
Rework labor
Wages of quality test engineers
Six Sigma training
Supplier quality inspection
Destructive product testing & inspection lab fees
ISO 9001 Quality System implementation
Product Recall and replacement
50,000
80,000
12,000
35,000
12,000
25,000
100,000
40,000
80,000
250,000
45,000
Transcribed Image Text:6. Given the following cost information for DeltaCorps Inc., calculate the flowing: Internal failure costs, External failure costs, Appraisal costs and Prevention costs. Cost items Annual cost in $ Product Warranty & Repairs Continuous Process Improvement System (Kaizen) Scrap and Discard of defective products Non-destructive testing of products Rework labor Wages of quality test engineers Six Sigma training Supplier quality inspection Destructive product testing & inspection lab fees ISO 9001 Quality System implementation Product Recall and replacement 50,000 80,000 12,000 35,000 12,000 25,000 100,000 40,000 80,000 250,000 45,000
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