Costs of Quality Some of the costs in the list below are costs of quality. For each cost, indicate by the appropriate letter what type of cost it is: prevention cost (P), appraisal cost (A), internal failure cost (I), external failure cost (E), or not a cost of quality (N/A).

a. Cost of raw materials used in discarded, defective products

b. Salary of the president of the company

c. Cost to purchase product testing equipment

d. Lawsuit costs stemming from the sale of defective products

e. Cost to repair defective products before shipment

f. Employee quality training costs g. Employee downtime caused by production halts to repair defective products h. Cost of sampling raw materials to ensure quality i. Customer warranty costs j. Property taxes k. Cost of lost reputation (i.e., lost sales)

l. Cost to help suppliers improve their product shipping procedures m. Interest cost on short-term loans n. Production process design costs