
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.
- The cost activities given into the four categories given.
- Plot the direct labor cost and a number of days paid on a scattergraph.
- 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.

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Chapter 2 Solutions
MANAGERIAL ACCOUNTING W/CONNECT
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