(L.OBJ. 4) Classifying quality costs and using these costs to make decisions [10-15 min]...

(L.OBJ. 4) Classifying quality costs and using these costs to make decisions [10-15 min]

Kelley manufactures high-quality speakers. Suppose Kelley is considering spending the following amounts on a new quality program:

Requirements

1. Classify each of these Costs into one of the four categories of quality costs (prevention, appraisal, internal failure, external failure).

2. Should Kelley implement the quality program? Give your reasons.