Harry, Inc., manufactures motor scooters. For each of the following examples of quality costs, indicate the quality

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Harry, Inc., manufactures motor scooters. For each of the following examples of quality costs, indicate the quality cost category it represents.

P Prevention costs IF Internal failure costs A Appraisal costs EF External failure costs 

1. Preventive maintenance on machinery 

2. Direct materials, direct labor, and manufacturing overhead costs incurred to rework a defective scooter that is detected inhouse through inspection 

3. Lost profits from lost sales if company's reputation was hurt because customers previously purchased a poor-quality scooter 

4. Costs of inspecting raw materials, such as chassis and wheels 

5. Working with suppliers to achieve on-time delivery of defectfree raw materials.

6. Cost of warranty repairs on a scooter that malfunctions at customer's location 

7. Costs of testing durability of vinyl 

8. Cost to re-inspect reworked scooters.

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Financial And Managerial Accounting

ISBN: 9780135080191

2nd Edition

Authors: Charles T Horngren, Jr Walter T Harrison

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