Exercise 12-1 (Static) Examples of Balanced Scorecard Performance Measures (LO12-1 Reid Company would like to implement a balanced Scorecard performance measurement system. Its senior management team has assembled the measures shown below for possible inclusion in its scorecard. Required: For each measure, indicate by placing an X in the appropriate column whether it would most likely be classified in the learning and growth, Internal business process, customer, or financial category of the company's balanced Scorecard. Learning Internal Business Process Customer Financial Growth Item Ex Employee absenteeism rate 1. Sales from new customers 2. Customer detection rate 3. Average fuel cost per sales dollar 4. Average number of workplace accidents per employee Exercise 12-2 (Static) Classification of Quality Costs (L012-2] A number of activities that are part of a company's quality control system are listed below: Required: 1. Classify the costs associated with each of these activities into one of the following categories: prevention cost, appraisal cost, Internal failure cost, or external failure cost. Prevention Appraisal Cost Cost Internal Failure Cost External Failure Cost Activities a Product testing b. Product recalls c. Rework labor and overhead d. Quality circles e. Downtime caused by defects 1. Cost of field servicing 9 Inspection of goods h Quality engineering Warranty repairs *** 1. Statistical process control k. Net cost of scrap 1. Depreciation of test equipment m. Returns and allowances arising from poor quality n. Disposal of production defects o. Technical support to suppliers p. Systems development 9. Warranty replacements Field testing at customer site s. Quality training 2-a. Which type of costs are incurred in an effort to keep poor quality of conformance from occurring? O External failure costs O Prevention costs and appraisal costs O Internal failure costs 2-b. Which type of costs are incurred because poor quality of conformance has occurred? O Prevention costs O Appraisal costs O Internal and external failure costs