Give the conclusion in the given cost of quality
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Give the conclusion in the given cost of quality

Transcribed Image Text:eTools
Latag, Aira Mae 1_FM-3B_TQM-Activity 5 - Excel (Product Activation Failed)
esign
O Tell me what you want to do.
F
Amount (P) - % COQ
Prevention Cost
New Product Review
Product Acceptance
Quality Training
Quality Planning
Total Prevention Cost
500
13,000
1,000
2,000
16,500
19.19%
Appraisal Cost
Allowances
Materials Inspection
Field Inspection
Total Appraisal Cost
7,500
2,500
12,000
22,000
25.58%
Internal Failure Cost
Downtime
Scrap
Retesting
Rework
Total Internal Failure Cost
5,000
10,000
6,000
9,000
30,000
34.88%
External Failure Cost
Warranty
Complaint Adjustment
Total External Failure Cost
15,000
2500
17,500
20 35%
100%
86,000
Total Cost
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