Identify each of the costs listed as a through (h) as one of the following: (1) prevention

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Identify each of the costs listed as a through \(h\) as one of the following: (1) prevention cost, (2) appraisal cost, (3) internal failure cost, or (4) external failure cost.

a. Reworking a product due to a problem discovered during inspection.

b. Cost of inspecting a product at two points during production.

c. Approving a new supplier based on preestablished criteria.

d. Cost due to a recall of a product due to the possibility of injury. Costs to adjust equipment in order to avoid material waste.

e. Costs to adjust equipment in order to avoid material waste.

f. Los Loss of customer loyalty on future purchases due to unsatisfactory service.
g. Replacing a labor-intensive process with an automated process to reduce human error.
h. Holding a customer focus group in order to get feedback on a product prototype's functionality.

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Cost Accounting Foundations And Evolutions

ISBN: 9781618533531

10th Edition

Authors: Amie Dragoo, Michael Kinney, Cecily Raiborn

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