Question

Wilson's Tax Service is tracking costs of quality. Classify each of the following as Prevention (P), Appraisal or Inspection (AI), Internal Failure (IF), or External Failure (EF) costs. 1. Review of tax return for missing items/errors. 2. Training of employees on new tax software. 3. Correction of errors found on review of tax returns. 4. Reprinting of corrected tax returns. 5. Legal costs resulting from lawsuits related to incorrect tax returns.

Answer 1

- Cost of service Quality " isn't the price of creating a Quality Product of et's the cost a nor Cueating a Qually puoduo ol service Examples Appraisal Cost Palvention Cost → Quality Engineering Quality tuaining " Quality Audit → Design Review → Quality ciudhe → inspection - Puoduct Acceptance - packaging inspection → Ried tering - Continuing supplice venticat External failue Cost Internal Pailun cost - Scrap → Recoolk → Re-inspection → Re- Pesting → Repau etc → Revenue los → warrantier → Discount Deuto Defecto - Product liability → coarranty ete Answer 1. Review of tax ueteuns Appuaisal Sherleen Cost Puevention COOL 2. Training of employees 3. Carlection of Errors & Repuinting of collected uetoni 5. Legal cost Intunae tailu Internal failure Extebroou failure