Classify the following quality costs as prevention costs, appraisal costs, internal failure costs, or external failure costs:
Question:
Classify the following quality costs as prevention costs, appraisal costs, internal failure costs, or external failure costs:
1. Finished units discarded by company because they are defective and cannot be reworked 2. Inspecting components purchased from outside suppliers 3. Reworking a defective product 4. Repairing a television still under warranty 5. Goods returned because they failed to meet customer specifications 6. Goods returned because they were damaged in transit 7. Training new personnel in the use of quality circles 8. Stopping work to correct process malfunction (discovered using statistical process control procedures)
9. Settlement of a product liability suit 10.Inspecting reworked products n. Lost sales because of incorrect product labeling 12. Internal audit of statistical process control procedures 13. Redesigning a product to eliminate the need to use an outside component with a high defect rate 14. Purchase order changes 1.3. Replacing a defective product 16. Testing a new product to see if it functions according to specifications 17. Repairing products in the field 18. Correcting software error discovered during development 19. Engineering resources used to help selected suppliers improve their product quality 20. Packaging inspection 21. Processing and responding to consumer complaints 22. Inspecting and testing prototypes 23. Retesting reworked units
Step by Step Answer:
Cost Management Accounting And Control
ISBN: 9780324002324
3rd Edition
Authors: Don R. Hansen, Maryanne M. Mowen