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Thursday, November 26, 2015

The Door Company manufactures doors

The Door Company manufactures doors. Classify each of the following quality costs as prevention costs, appraisal costs, internal failure costs, or external failure costs.

a. Retesting of reworked products
b. Downtime due to quality problems
c. Analysis of the cause of defects in production
d. Depreciation of test equipment
e. Warranty repairs
f. Lost sales arising from a reputation for poor quality
g. Quality circles
h. Rework direct manufacturing labor and overhead
i. Net cost of spoilage
j. Technical support provided to suppliers
k. Audits of the effectiveness of the quality system
l. Plant utilities in the inspection area
m. Reentering of data because of keypunch errors

_______________ Prevention costs

_______________ Appraisal costs

_______________ Internal failure costs

_______________ External failure costs

Click here for the solution: The Door Company manufactures doors