40, \'al 14% 7:33 PM A number of quality-related costs are provided in the follo
ID: 2569659 • Letter: 4
Question
40, 'al 14% 7:33 PM A number of quality-related costs are provided in the following table Description of Quality Costs Prevention Appraisal Internal Failure External Failure costs 2 Warranty repa airs and replacements Promotion and awards costs for quality efforts of loyees 4 Supplies used in testin 5 Downtime costs 6 Inventorv in 7 Training costs 8 Customer relations costs 9 Reliability testing costs 10 Re-inspection costs 1 Repair and rework costs incurred before sale 12 Equipment maintenance 13 Product design costs 14 cts costs aton on testinExplanation / Answer
Sl no
Description of Quality controls
Preventive
Appraisal
Internal cost
External failure cost
1
Scrap costs
3
2
Warranty repairs and replacements
3
3
Promotion and award costs for quality efforts of employees
3
4
Supplies used in testing products
3
5
Downtime costs
3
6
Inventory inspection costs
3
7
Training costs
3
8
Customer relationship costs
3
9
Reliability testing costs
3
10
Re inspection costs
3
11
Repairs and rework cost incurred before sale
3
12
Equipment maintenance costs
3
13
Product design costs
3
14
Depreciation on testing Equipment
3
Prevention costs
It is much better to prevent defects rather than finding and removing them from products. The costs incurred to avoid or minimize the number of defects at first place.
Appraisal costs
Appraisal costs also known as inspection costs, are those cost that are incurred to identify defective products before they are sent to customers. All costs associated with the activities that are performed during manufacturing processes to ensure required quality standards are also included in this category..
Internal failure costs
Internal failure costs are those costs that are incurred to remove defects from the products before shipping them to customers
External failure costs
If defective products have been shipped to customers, external failure costs arise. External failure costs include warranties, replacements
Sl no
Description of Quality controls
Preventive
Appraisal
Internal cost
External failure cost
1
Scrap costs
3
2
Warranty repairs and replacements
3
3
Promotion and award costs for quality efforts of employees
3
4
Supplies used in testing products
3
5
Downtime costs
3
6
Inventory inspection costs
3
7
Training costs
3
8
Customer relationship costs
3
9
Reliability testing costs
3
10
Re inspection costs
3
11
Repairs and rework cost incurred before sale
3
12
Equipment maintenance costs
3
13
Product design costs
3
14
Depreciation on testing Equipment
3
Prevention costs
It is much better to prevent defects rather than finding and removing them from products. The costs incurred to avoid or minimize the number of defects at first place.
Appraisal costs
Appraisal costs also known as inspection costs, are those cost that are incurred to identify defective products before they are sent to customers. All costs associated with the activities that are performed during manufacturing processes to ensure required quality standards are also included in this category..
Internal failure costs
Internal failure costs are those costs that are incurred to remove defects from the products before shipping them to customers
External failure costs
If defective products have been shipped to customers, external failure costs arise. External failure costs include warranties, replacements
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