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Stark and Company's has the following cost data Systems development $29,000 Final product testing and inspection $12,000 Quality data gathering, analysis and reporting $9,000 Net
Stark and Company's has the following cost data
| Systems development | $29,000 |
| Final product testing and inspection | $12,000 |
| Quality data gathering, analysis and reporting | $9,000 |
| Net cost of scrap | $58,000 |
| Customer returns arising from quality problems | $56,000 |
| Amortization of testing equipment | $53,000 |
| Rework labour and overhead | $16,000 |
| Testing and inspection of incoming materials | $38,000 |
| Product recalls | $33,000 |
Submission Instructions:
1. Determine the total prevention costs?
2. Determine total appraisal costs?
3. Determine the total internal failure costs?
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Principles of Economics
Authors: Robert Frank, Ben Bernanke
5th edition
73511404, 978-0073511405
