Classify the following quality costs as prevention costs, appraisal costs, internal failure costs, or external failure costs:
Exercise 14.10 Quality Cost Classification
Classify the following quality costs as prevention costs, appraisal costs, internal failure costs, or external failure costs:
1. Inspection of reworked units
2. Inspecting and testing a newly developed product (not yet being sold)
3. Retesting a reworked product
4. Repairing a computer still under warranty
5. Discount allowed to customers because products failed to meet customer specifications
6. Goods returned because they failed to meet specifications
7. The cost of evaluating and certifying suppliers
8. Stopping work to correct process malfunction (discovered using statistical process control procedures)
9. Testing products in the field
10. Discarding products that cannot be reworked
11. Lost sales because of recalled products
12. Inspection of incoming materials
13. Redesigning a product to eliminate the need to use an outside component with a high defect rate
14. Purchase order changes
15. Replacing a defective product
16. Inspecting and testing prototypes
17. Repairing products in the field
18. Correcting a design error discovered during product development
19. Engineering resources used to help selected suppliers improve their product quality
20. Packaging inspection
21. Processing and responding to consumer complaints
22. Training production line workers in new quality procedures
23. Sampling a batch of goods to determine if the batch has an acceptable defect rate
Homework Answers
Prevention costs: 7, 8, 19,
22
Appraisal costs: 1,2, 9, 12, 16, 20, 23
Internal failure costs: 3, 10, 13, 17, 18
External failure costs: 4, 5, 6, 11, 14, 15, 21
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Classify the following quality costs as prevention costs, appraisal costs, internal failure costs, or external failure costs:
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TUU LAURCISES* Exercise 14.25 Which of the following quality costs is an internal failure cost? a. Inspection of reworked units b. Lost sales because of products failing to meet specifications c. Replacing a defective product d Training production line workers in new quality procedures Exercise 14.26 Which of the following would be a hidden quality cost? 2. Inspecting and testing prototypes b. Repairing a computer still under warranty Stopping work to correct process malfunction (discovered using statistical process control procedures)...
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36) Distinguish the following costs as prevention, appraisal, internal failure, or external failure: 10 points total) a) Rework substandard products b) Technical support provided to suppliers c) Warranty repairs and replacements d) Inspection of test equipment e) Liability arising from defective products f) Field testing and appraisal at customer site g) Disposal of defective products during production 37) Diamond Corp. has provided the following information for the year ended December 31, 2018.
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Click the Requiremec 1. Classify 2. Should Le Data Table malt Requireme external fail hal far Larter is considering spending the following amounts on the new program Additional 20 minutes testing for each speaker $ 620.000 Negotiating and training suppliers to obtain higher quality materials and on time delivery 350.000 Redesigning the speakers to make them easier to manufacture 1.450.000 Additional 2 Larter expects this quality program to save costs as follows Reduce warranty repair costs 250,000 Avoid inspection of...
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