Exercise 14.10 Quality Cost Classification OBJECTIVE.
Classify the following quality costs as prevention costs, appraisal costs, internal failure costs, or
external failure costs:
1.Inspection of reworked units
2.Inspecting and testing a newly developed product (not yet being sold)
3.Retesting a reworked product
4.Repairing a computer still under warranty
5.Discount allowed to customers because products failed to meet customer specifications
6.Goods returned because they failed to meet specifications
7.The cost of evaluating and certifying suppliers
8.Stopping work to correct process malfunction (discovered using statistical process control procedures)
9.Testing products in the field
10.Discarding products that cannot be reworked
11.Lost sales because of recalled products
12.Inspection of incoming materials
13.Redesigning a product. to eliminate the need to use an outside component with a high defect rate
14.Purchase order changes