These cost items are from Rocket Company's Accounts for a typical month:

Design work to improve the way products are made	$48,000
Warranty work to satisfy customer complaints	24,000
Employee training	36,000
Incoming materials inspection	40,000
Scrap	36,000
Cost of returned goods	48,000
Inspection at the end of the production process	60,000

A. Classify these items into prevention costs, appraisal costs, internal failure costs, and external failure costs.

B. Suppose Rocket Company could spend an additional $40,000 per month on incoming materials inspection, and thereby reduce internal failure and external failure costs by 20% each per month. Would this be a wise thing for Rocket Company to do?

C. Give two examples of additional nonfinancial quality measures that Rocket Company could use to help improve quality

Answer should be in similar setup as below

Part A Internal External Prevention Appr ileFailre Total Costs Costs Costs Costs Costs Design work to improve. Warranty etc etc etc Totals Part B Internal External Prevention Appr Failure Failure Total Costs Costs Costs Costs Costs Design work to improv.. Warranty etc etc etc Totals Conclusion Part C