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Heracross Inc quality cost report is based on the following data: Test and inspection of in-process goods P 38,000 Quality training Product recalls Net

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Heracross Inc quality cost report is based on the following data: Test and inspection of in-process goods P 38,000 Quality training Product recalls Net cost of scrap Cost of handling complaints Final product testing and inspection Returns arising from quality problems Statistical process control activities 56,000 80,000 98,000 30,000 89,000 33,000 83,000 Liability arising from defective products 72,000 Downtime caused by quality problems 78,000 Quality data gathering, analysis, and reporting 85,000 Systems development 54,000 Technical support provided to suppliers 55,000 Disposal of defective products 76,000 Lost sales due to poor quality 40,000 P would be the Total External Failure Cost appearing on the quality cost report.

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