Chapter 4, Problem 4.15SE

Classifying costs of quality (Learning Objective 5)

Classify each of the following quality-related costs as prevention costs, appraisal costs, internal failure costs, or external failure costs.

1. 1. Warranty repairs
2. 2. Legal fees from customer lawsuits
3. 3. Training employees
4. 4. Cost incurred producing and disposing of defective units
5. 5. Lost productivity due to machine breakdown
6. 6. Inspecting products that are halfway through the production process
7. 7. Inspecting incoming raw materials
8. 8. Repairing defective units found during inspection
9. 9. Incremental cost of using a higher-grade raw material
10. 10. Redesigning the production process