Classify the following quality costs as prevention costs, appraisal costs, internal failure costs external failure costs: 1. Scrap (created by defective units) 2. Certifying a vendor to ensure that quality pans are provided 3. Stopping work to control process malfunction 4. Replacing a defective product for a customer 5. Goods returned because they were defective 6. Inspecting a subassembly 7. Inspecting and testing prototypes 8. Reinspecting a reworked product 9. Packaging inspection 10. Lost sales because of recalled products 11. Recall to repair defective products 12. Process acceptance 13. Internal audit to ensure that quality guidelines and processes are being followed 14. Repairing products in the field 15. Providing engineering assistance to selected suppliers to improve their product quality 16. Correcting a design error discovered during product development 17. Settling a bodily injury lawsuit caused by a defective product 18. Customer complaint department 19. Quality control circles 20. Continuing supplier verification 21. Redesigning a product to eliminate a product defect 22. Lost sales because of product quality concerns

BuyFind

Managerial Accounting: The Corners...

7th Edition
Maryanne M. Mowen + 2 others
Publisher: Cengage Learning
ISBN: 9781337115773
BuyFind

Managerial Accounting: The Corners...

7th Edition
Maryanne M. Mowen + 2 others
Publisher: Cengage Learning
ISBN: 9781337115773

Solutions

Chapter
Section
Chapter 13, Problem 40E
Textbook Problem

Classify the following quality costs as prevention costs, appraisal costs, internal failure costs external failure costs:

  1. 1. Scrap (created by defective units)
  2. 2. Certifying a vendor to ensure that quality pans are provided
  3. 3. Stopping work to control process malfunction
  4. 4. Replacing a defective product for a customer
  5. 5. Goods returned because they were defective
  6. 6. Inspecting a subassembly
  7. 7. Inspecting and testing prototypes
  8. 8. Reinspecting a reworked product
  9. 9. Packaging inspection
  10. 10. Lost sales because of recalled products
  11. 11. Recall to repair defective products
  12. 12. Process acceptance
  13. 13. Internal audit to ensure that quality guidelines and processes are being followed
  14. 14. Repairing products in the field
  15. 15. Providing engineering assistance to selected suppliers to improve their product quality
  16. 16. Correcting a design error discovered during product development
  17. 17. Settling a bodily injury lawsuit caused by a defective product
  18. 18. Customer complaint department
  19. 19. Quality control circles
  20. 20. Continuing supplier verification
  21. 21. Redesigning a product to eliminate a product defect
  22. 22. Lost sales because of product quality concerns

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Chapter 13 Solutions

Managerial Accounting: The Cornerstone of Business Decision-Making
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