Clarkson Corp. manufactures radiation$-$shielding glass panels.

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Requirements

Classify each item as a prevention cost, an appraisal cost, an internal failure cost, or an external failure cost.

Should Clarksonimplement the new quality program? Give your reason.

Requirement $1.$ Classify each item as a prevention cost, an appraisal cost, an internal failure cost, or an external failure cost.

Type of Quality Cost

Cost

Strength$-$testing one item from each batch of panels

Information

Suppose Clarkson is considering spending the following amounts on a new TQM program:

Strength$-$testing one item from each batch of panels

Training employees in TQM

$ $26,000$

Training suppliers in TQM

$ $31,000$

Identifying preferred suppliers that commit to on$-$time delivery of perfect quality materials $......$ $ $60,000$

Clarksonexpects the new program to save costs through the following: