Question

34. With regard to quality, the costs that a company must emphasize to improve its quality are:

to. External failure costs

b. Internal failure costs

c. Assessment costs

d. Prevention costs

Questions 35-40. Classify the mentioned costs using the following letters:

to. Prevention

b. Evaluation

c. Internal failure

d. External failure

35. Inspect purchased raw material when it arrives at the factory.

36. Honor a customer's warranty for a defective product

37. Repair defective products before selling them (rework)

38. Cost of damaged units (spoilage)

39. Training of manufacturing employees

40. Maintenance of the manufacturing equipment every three months

Answer 1

Answer 34:

Correct answer is option d = Prevention cost

Explanation:

Option a is incorrect because external failure cost are those cost which are incurred if a product found defective after sale on use by customer. Such as warranty costs.

Option b is incorrect as Internal failure cost are cost associated with products that are found defective before sale .

Option c is incorrect becauseAssessment cost are not the costs related to improving the quality of product.

Option d is correct because Prevention cost are costs that are incurred to prevent and avoid product quality issues . These costs include designing, implementation and maintenance of quality management system.

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Answer 35 to 40

	Classification of Cost
		Type of Cost	Explanation
35	Inspect purchased raw material when it arrives at the factory.	b . Evaluation	Evaluation or appraisal cost are cost incurred to inspect incoming materials.
36	Honor a customer's warranty for a defective product	d. External Failure	External failure cost are those cost which are incurred if a product found defective after sale on use by customer. Such as warranty costs.
37	Repair defective products before selling them (rework)	c. Internal Failure	Internal failure cost are cost associated with products that are found defective before sale .
38	Cost of damaged units (spoilage)	c. Internal Failure	Internal failure cost are cost associated with products that are found defective before sale .it includes cost of damaged products.
39	Training of manufacturing employees	a. prevention	Prevention cost are costs that are incurred to prevent and avoid product quality issues . It includes training of employees.
40	Maintenance of the manufacturing equipment every three months.	a. prevention	Prevention cost are costs that are incurred to prevent and avoid product quality issues . include designing, implementation and maintenance of quality management system.

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