A number of activities that are part of a company's quality control system are listed below: 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. Prevention Appraisal Cost Internal Failure Cost External Failure Cost Activities 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 I. Depreciation of test equipment m. Returns and allowances arising from poor quality n. Disposal of production defects Technical support to suppliers p. Systems development q. Warranty replacements r. Field testing at customer site s. Quality training
A number of activities that are part of a company's quality control system are listed below: 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. Prevention Appraisal Cost Internal Failure Cost External Failure Cost Activities 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 I. Depreciation of test equipment m. Returns and allowances arising from poor quality n. Disposal of production defects Technical support to suppliers p. Systems development q. Warranty replacements r. Field testing at customer site s. Quality training
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 10MC: What is the proper order of tasks In an ABC system? identify the cost drivers, assign the costs to...
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