Question

Match each of the following activities with the appropriate quality cost classification (a–d).

Group of answer choices

Disposing of scrap

      [ Choose ]            Appraisal cost            External failure cost            Internal failure cost            Prevention cost      

Recalling defective products

      [ Choose ]            Appraisal cost            External failure cost            Internal failure cost            Prevention cost      

Performing warranty work

      [ Choose ]            Appraisal cost            External failure cost            Internal failure cost            Prevention cost      

Testing products

      [ Choose ]            Appraisal cost            External failure cost            Internal failure cost            Prevention cost      

Controlling vendor quality

      [ Choose ]            Appraisal cost            External failure cost            Internal failure cost            Prevention cost      

Processing returned merchandise

      [ Choose ]            Appraisal cost            External failure cost            Internal failure cost            Prevention cost      

Maintaining equipment

      [ Choose ]            Appraisal cost            External failure cost            Internal failure cost            Prevention cost      

Training operators  

      [ Choose ]            Appraisal cost            External failure cost            Internal failure cost            Prevention cost      

Answer 1

Appraisal costs are linked with quantifying and observing activities related to quality. These costs are connected with the suppliers’ and customers’ appraisal of purchased materials, processes, products, and services to guarantee that they adapt to stipulations.

Internal failure costs are incurred to cure defects learnt before the product or service is sent to the customer. These costs happen when the consequences of work fail to reach design quality standards and are noticed before they are transferred to the customer.

External failure costs are sustained to remedy defects revealed by customers. These costs occur when products or services that fail to reach design quality standards are not detected until after transfer to the customer.

Prevention costs are suffered to prevent or avoid quality problems. These costs are related with the design, implementation, and maintenance of the quality management system. They are prearranged and suffered before actual operation,

Disposing of scrap -  Internal failure cost  

Recalling defective products - External failure cost

Performing warranty work - External failure cost

Testing products - Appraisal cost

Controlling vendor quality - Appraisal cost

Processing returned merchandise - External failure cost

Maintaining equipment - Prevention cost

Training operators - Prevention cost