QUESTION 19

1. Zagart's Zambonis manufactures Zambonis (ice rink machines). Its cost of quality data appears below. Total manufacturing cost this year was $4.6 million.

   	$ thou
   Engineering tests at supplier's factory	18
   Field testing new product	12
   Inspection costs	42
   Process re-engineering	50
   Product redesign	42
   Rework	45
   Sales returns (at cost)	105
   Scrap	22
   Training employees on new system	6
   Warranty repairs	60
   Waste	14
   Total	416

   Which is true?

   		Prevention costs are $116,000
   		Appraisal costs total $72,000
   		Internal failure costs amount to $186,000
   		External failure cost ZZ $105,000
   		None of the above