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The table below has the amounts spent on quality costs Activity Systems development Technical support to suppliers of components Technical support to suppliers of raw
The table below has the amounts spent on quality costs Activity Systems development Technical support to suppliers of components Technical support to suppliers of raw material Field testing at customers' sites Inspection on assembling line Rework on assembling line Warranty repairs of delivered products Warranty replacements for products Total quality costs Year 1 Year 2 Year 3 so $150 0 S0 $175 $175 $0 $160 $150 S0 $275 $275 0 $500 $500 $20 $700 $500 $400 $1750 $1,300 $1,000 $2,900 $3,105 $2,520 $450 $45 Required a) Considering the activities listed in the table above, classify these 8 activities among the four types of quality costs. (4 marks) Provide an example of an appraisal cost, different from the activities listed on the table above, and justify why this new activity you have provided is classified as an appraisal cost. (4 marks) Using the information provided in the table above through the years, explain the behaviour between the four types of quality costs and what has changed regarding the strategy throughout the years. (10 marks) b) c)
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