Chapter 2.B, Problem 2E

To determine

Cost of quality: The costs that are incurred to avoid, prevent, detect or removes defect from a product are called cost of quality or quality costs. The cost of quality is divided into appraisal costs, prevention costs, external failure costs, and internal failure costs

Prevention cost: Prevention costs are the costs that are incurred to prevent or avoid defects in the product.

Appraisal Cost: Appraisal costs are the costs that are incurred for testing and inspecting the products to identify the defects before delivering them.

Internal failure cost: Internal failure costs are the costs that are incurred to remove identified defects from products before delivering them.

External failure cost: External failure costs are the costs that are incurred to remove defects from products that have already been delivered to the customers.

1. The cost activities given into the four categories given.
2. Plot the direct labor cost and a number of days paid on a scattergraph.
3. Identify the costs which are incurred in an effort to keep the poor quality of conformance from occurring and which are incurred because the poor quality of conformance has occurred.