a. Product testing. b. Product recalls. c. Rework labor and overhead. d. Quality circles. e. Downtime caused by defects. f. Cost of field servicing. g. Inspection of goods. h. Quality engineering. i. Warranty repairs. j. Statistical process control. k. Net cost of scrap. 1. Depreciation of test equipment. m. Returns and allowances arising from poor quality. n. Disposal of defective products. o. Technical support to suppliers. Systems development. p. q. Warranty replacements. r. Field testing at customer site. Product design. s. Required: 1. Classify the costs associated with each of these activities into one of the following categories: prevention cost, appraisal cost, internal failure cost, or external failure cost.
a. Product testing. b. Product recalls. c. Rework labor and overhead. d. Quality circles. e. Downtime caused by defects. f. Cost of field servicing. g. Inspection of goods. h. Quality engineering. i. Warranty repairs. j. Statistical process control. k. Net cost of scrap. 1. Depreciation of test equipment. m. Returns and allowances arising from poor quality. n. Disposal of defective products. o. Technical support to suppliers. Systems development. p. q. Warranty replacements. r. Field testing at customer site. Product design. s. Required: 1. Classify the costs associated with each of these activities into one of the following categories: prevention cost, appraisal cost, internal failure cost, or external failure cost.
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 11MCQ
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