Required: Classify each of the following as Prevention (P), Appraisal or Inspection (Al), Internal Failure (IF), or External Failure (EF) costs. 1. Cost of scrapped product. 2. Damage to company's reputation. 3. Cost of rework. 4. Quality training. 5. Costs of the quality control department. 6. Cost of downtime created by quality problems. 7. Simplifying the product design to reduce defects. 8. Product replacement costs.

Required: Classify each of the following as Prevention (P), Appraisal or Inspection (Al), Internal Failure (IF), or External Failure (EF) costs. 1. Cost of scrapped product. 2. Damage to company's reputation. 3. Cost of rework. 4. Quality training. 5. Costs of the quality control department. 6. Cost of downtime created by quality problems. 7. Simplifying the product design to reduce defects. 8. Product replacement costs.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter13: Emerging Topics In Managerial Accounting

Section: Chapter Questions

Problem 9MCQ: Which of the following is a prevention cost? a. Inspection of materials. b. Continuing supplier...

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