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An automobile manufacturer assesses quality costs: Prevention $200,000, Appraisal $150,000, Internal failure $120,000, External failure $80,000. Requirements: Classify quality costs by cost category (prevention, appraisal,

  1. An automobile manufacturer assesses quality costs: Prevention $200,000, Appraisal $150,000, Internal failure $120,000, External failure $80,000.
    • Requirements:
      • Classify quality costs by cost category (prevention, appraisal, internal failure, external failure).
      • Calculate the cost of poor quality as a percentage of sales.
      • Prepare a quality cost analysis report.
      • Recommend strategies to reduce quality costs and improve overall product quality.
      • Discuss how effective quality cost management can enhance customer satisfaction and brand reputation.

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