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. Reworking defective units 2. Litigation costs from product liability claims 3. Inspecting incoming raw materials 4. Training employees 5. Warranty repairs 6. Redesigning the production process 7. Lost productivity due to machine breakdown 8. Inspecting products that are halfway through the production process 9. Incremental cost of using a higher-grade raw material 10.Cost incurred producing and disposing of defective units