effort to keep defects from occurring. 5. A company incurs 4. A company incurs and are generally the most damaging to a company customers are known as defective manufacturing practices, and the providing of substandard te poo known as are incurred placing its greatest emphasis on marize such costs on a 6. Of the four groups of costs associated with quality of cont 7. Inspection, testing, and other costs incurred to keep defecti are incurred in an effort to eliminate 9. The costs relating to defets, rejected products, and downtime caurd serviee 10. When a product that is defective in some way is delivered to a custome I1. Over time a company's total quality costs should decrease if it redistrib 12. One way to ensure that management is aware of the costs associa 8. ssociated with quality EXERCISE 1A-2 Classification of Quality Costs LO1-7 A number of activities that are a part of a company's quality control system are listed a. Product testing. b. Product recalls. c. Rework labor and overhead d. Quality circles. e. Downtime caused by defects. f. Cost of field servicing. g. Inspection of goods h. Quality engineering. i. Warranty repairs. k. Net cost of scrap. I. Depreciation of test equipment m. Returns and allowances arising fron) quality n. Disposal of defective products. o. Technical support to suppliers. p. Systems development. q. Warranty replacements. r. Field testing at customer site j. Statistical process control. s. Product design. Required: 1. Classify the costs associated with each of these activities into one of the following cate prevention cost, appraisal cost, internal failure cost, or external failure cost 2. Which of the four types of costs in (1) above are incurred in an effort to keep poo of conformance from occurring? Which of the four types of costs in (1) above are because poor quality of conformance has occurred? ROBLEM 1A-3 Analyzing a Quality Cost Report Lo1-8 ry, Inc, produces cell phones at its plant in Texas. In recent years, the company as in which companies comper by stiff competition from overseas Price nnd in