Classify the following quality costs as prevention, appraisal, internal failure, or external failure. Also, label each cost as variable or fixed with respect to sales volume. 1. Quality engineering 2. Scrap 3. Product recalls 4. Returns and allowances because of quality problems 5. Sales data re-entered because of keying errors 6. Supervision of in-process inspection 7. Quality circles 8. Component inspection and testing 9. Quality training 10. Reinspection of reworked product 11. Product liability 12. Internal audit assessing the effectiveness of quality system 13. Disposal of defective product 14. Downtime attributable to quality problems 15. Quality reporting 16. Proofreading 17. Correction of typing errors 18. In-process inspection 19. Process controls 20. Pilot studies

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Classify the following quality costs as prevention, appraisal, internal failure, or external failure. Also, label each cost as variable or fixed with respect to sales volume. 1. Quality engineering 2. Scrap 3. Product recalls 4. Returns and allowances because of quality problems 5. Sales data re-entered because of keying errors 6. Supervision of in-process inspection 7. Quality circles 8. Component inspection and testing 9. Quality training 10. Reinspection of reworked product 11. Product liability 12. Internal audit assessing the effectiveness of quality system 13. Disposal of defective product 14. Downtime attributable to quality problems 15. Quality reporting 16. Proofreading 17. Correction of typing errors 18. In-process inspection 19. Process controls 20. Pilot studies

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