Required: Classify each of the following as Prevention (P), Appraisal or Inspection (Al), Internal Failure (IF), or External Failure (EF) costs. 1. Cost of scrapped product. 2. Damage to company's reputation. 3. Cost of rework. 4. Quality training. 5. Costs of the quality control department. 6. Cost of downtime created by quality problems. 7. Simplifying the product design to reduce defects. 8. Product replacement costs.
Required: Classify each of the following as Prevention (P), Appraisal or Inspection (Al), Internal Failure (IF), or External Failure (EF) costs. 1. Cost of scrapped product. 2. Damage to company's reputation. 3. Cost of rework. 4. Quality training. 5. Costs of the quality control department. 6. Cost of downtime created by quality problems. 7. Simplifying the product design to reduce defects. 8. Product replacement costs.
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter13: Emerging Topics In Managerial Accounting
Section: Chapter Questions
Problem 9MCQ: Which of the following is a prevention cost? a. Inspection of materials. b. Continuing supplier...
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