Classify the following quality costs as prevention costs, appraisal costs, internal failure costs, or external failure costs:

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Classify the following quality costs as prevention costs, appraisal costs, internal failure costs, or external failure costs:

1. Scrap (created by defective units)

2. Certifying a vendor to ensure that quality parts are provided

3. Stopping work to control process malfunction

4. Replacing a defective product for a customer

5. Goods returned because they were defective

6. Inspecting a subassembly

7. Inspecting and testing prototypes

8. Reinspecting a reworked product

9. Packaging inspection

10. Lost sales because of recalled products

11. Recall to repair defective products

12. Process acceptance

13. Internal audit to ensure that quality guidelines and processes are being followed

14. Repairing products in the field

15. Providing engineering assistance to selected suppliers to improve their product quality

16. Correcting a design error discovered during product development

17. Settling a bodily injury lawsuit caused by a defective product

18. Customer complaint department

19. Quality control circles

20. Continuing supplier verification

21. Redesigning a product to eliminate a product defect

22. Lost sales because of product quality concerns

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Managerial Accounting The Cornerstone of Business Decision Making

ISBN: 978-1337115773

7th edition

Authors: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

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