Classify the following quality costs as prevention, appraisal, internal failure, or external failure. Also, label each cost as variable or fixed with respect to sales volume. 1. Quality engineering 2. Scrap 3. Product recalls 4. Returns and allowances because of quality problems 5. Sales data re-entered because of keying errors 6. Supervision of in-process inspection 7. Quality circles 8. Component inspection and testing 9. Quality training 10. Reinspection of reworked product 11. Product liability 12. Internal audit assessing the effectiveness of quality system 13. Disposal of defective product 14. Downtime attributable to quality problems 15. Quality reporting 16. Proofreading 17. Correction of typing errors 18. In-process inspection 19. Process controls 20. Pilot studies

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter11: Strategic Cost Management
Section: Chapter Questions
Problem 8E: Classify the following cost drivers as structural, executional, or operational. a. Number of plants...
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Classify the following quality costs as prevention, appraisal, internal failure, or external failure. Also, label each cost as variable or fixed with respect to sales volume. 1. Quality engineering 2. Scrap 3. Product recalls 4. Returns and allowances because of quality problems 5. Sales data re-entered because of keying errors 6. Supervision of in-process inspection 7. Quality circles 8. Component inspection and testing 9. Quality training 10. Reinspection of reworked product 11. Product liability 12. Internal audit assessing the effectiveness of quality system 13. Disposal of defective product 14. Downtime attributable to quality problems 15. Quality reporting 16. Proofreading 17. Correction of typing errors 18. In-process inspection 19. Process controls 20. Pilot studies

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