A number of activities that are part of a company's quality control system are listed below: Required: 1. Classify the costs associated with each of these activities into one of the following categories: prevention cost, appraisal cost, internal failure cost, or external failure cost. 2-a. Which type of costs are incurred in an effort to keep poor quality of conformance from occurring? 2-b. Which type of costs are incurred because poor quality of conformance has occurred?
A number of activities that are part of a company's quality control system are listed below: Required: 1. Classify the costs associated with each of these activities into one of the following categories: prevention cost, appraisal cost, internal failure cost, or external failure cost. 2-a. Which type of costs are incurred in an effort to keep poor quality of conformance from occurring? 2-b. Which type of costs are incurred because poor quality of conformance has occurred?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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the categories chart show in the image is for question 1.
answer full question please.
Transcribed Image Text:1
a. Product testing
b. Product recalls
c. Rework labor and overhead
d. Quality circles
e. Downtime caused by defects
f. Cost of field servicing
g. Inspection of goods
h. Quality engineering
i. Warranty repairs
j. Statistical process control
k. Net cost of scrap
1. Depreciation of test equipment
m. Returns and allowances arising from poor quality
n. Disposal of production defects
o. Technical support to suppliers
p. Systems development
q. Warranty replacements
r. Field testing at customer site
s. Quality training
Transcribed Image Text:1
A number of activities that are part of a company's quality control system are listed below:
Required:
1. Classify the costs associated with each of these activities into one of the following categories: prevention cost, appraisal cost,
internal failure cost, or external failure cost.
2-a. Which type of costs are incurred in an effort to keep poor quality of conformance from occurring?
2-b. Which type of costs are incurred because poor quality of conformance has occurred?
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