Question
a) Classify each of the following costs as either prevention, appraisal, internalfailure or external failure. (8 marks) Cost Product testing Warranty claims Training of production
a) Classify each of the following costs as either prevention, appraisal, internalfailure or external failure. (8 marks) Cost Product testing Warranty claims Training of production employees Products rejected in testing Inspection of Raw Materials Reputation losses from faulty products Production losses due to machine breakdowns Maintenance on production equipment Amount $25,000 Classification $ 40,000 $ 35,000 $ 7,500 $ 4,500 $ 55,000 $ 95,000 $ 45,000 I b) Prepare a Cost of Quality Report, listing the costs by category and including the percentage of total costs of quality incurred by each cost category. (2 marks)
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