The following costs were incurred by Osaka Metals Company to maintain the quality of its products.(The yen is the national currency of Japan.)1. Operating an X-ray machine to detect faulty welds, 110,000 yen2. Repairs of products sold last year, 116,000 yen3. Cost of rewelding faulty joints, 17,000 yen4. Cost of sending machine operators to a three-week training program so they could learn to use new production equipment with a lower defect rate, 18,100 yenRequired: Classify each of these costs as a prevention, appraisal, internal failure, or external failure cost.
The following costs were incurred by Osaka Metals Company to maintain the quality of its products.(The yen is the national currency of Japan.)1. Operating an X-ray machine to detect faulty welds, 110,000 yen2. Repairs of products sold last year, 116,000 yen3. Cost of rewelding faulty joints, 17,000 yen4. Cost of sending machine operators to a three-week training program so they could learn to use new production equipment with a lower defect rate, 18,100 yenRequired: Classify each of these costs as a prevention, appraisal, internal failure, or external failure cost.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following costs were incurred by Osaka Metals Company to maintain the quality of its products.
(The yen is the national currency of Japan.)
1. Operating an X-ray machine to detect faulty welds, 110,000 yen
2. Repairs of products sold last year, 116,000 yen
3. Cost of rewelding faulty joints, 17,000 yen
4. Cost of sending machine operators to a three-week training program so they could learn to use new production equipment with a lower defect rate, 18,100 yen
Required: Classify each of these costs as a prevention, appraisal, internal failure, or external failure cost.
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