Determining the door company


The Door Company manufactures doors. Classify each of the following quality costs as prevention costs, appraisal costs, internal failure costs, or external failure costs.

Retesting of reworked products

Downtime due to quality problems

Analysis of the cause of defects in production

Depreciation of test equipment

Warranty repairs

Lost sales arising from a reputation for poor quality

Quality circles

Rework direct manufacturing labor and overhead

Net cost of spoilage

Technical support provided to suppliers

Audits of the effectiveness of the quality system

Plant utilities in the inspection area

Reentering data because of keypunch errors

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Accounting Basics: Determining the door company
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