Appraisal-internal failure and external failure


Task: The following costs were incurred by Osaka Metals Company to maintain the quality of its products. (Yen is the national currency in Japan).

1. Operating an X-ray machine to detect faulty welds, 110,000 yen.

2. Repairs of products sold last year, 116,000 yen.

3. Cost of rewelding faulty joints, 17,000 yen.

4. Cost of sending machine operators to a three week training program so they could learn to use new production equipment with a lower defect rate,18,100 yen.

Required: Classify each of these costs as a prevention, appraisal, internal failure, or external failure.

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Accounting Basics: Appraisal-internal failure and external failure
Reference No:- TGS01879343

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