LO$19-2,$ LO$19-7$

EXERCISE $19\mathrm{.}13$

Classifying Activities

Classify each of the following activities into one of the four cost of quality categories and$/$or identify it as a value$-$added or a non$-$value$-$added activity.

a$.$ Rework, due to poor materials, on bicycles at Trek.

b$.$ Inspection costs incurred by Walmart on merchandise purchased from Mattel, Inc.

c$.$ Costs incurred by Walmart when merchandise, purchased from Grocers, Inc., spoils in its warehouse before shipping to its stores.

d$.$ Work in process inventory wait$-$and$-$move time between the lathing and finishing stages in a furniture manufacturing facility.

e$.$ Training for line workers on proper operation of equipment.

f$.$ Recording the number of defects produced each month.

g$.$ Offering customer refunds due to defective products.

h$.$ Waste disposal costs at Kimberly$-$Clark.