Service company

Jim and Cerry just bought a bed and breakfast inn at a very attractive price. The business had been doing poorly. Before they reopened the inn for business, they attended a seminar on operating a high-quality business. Now that they are ready to open the inn, they need some advice on quality costs and management.

Required: Classify each of the following quality costs as prevention costs, appraisal costs, internal failure costs, or external failure costs

a. Recleaing rooms and facilities

b. Inspecting rooms, facilities, building and grounds regularly

c. Hiring employees with good references

d. Emergency cleaning of rooms when not ready on time

e. Good security

f. Verifying accuracy of reservation and registration procedures

g. Purchasing quality furniture

___________Prevention costs

__________Appraisal costs

__________ Internal failure costs

__________ External failure costs