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Ply Corp Manufactures Doors

Question 75

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Ply Corp manufactures doors. Classify each of the following quality costs as:

Premises:
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
Responses:
Prevention costs
Appraisal costs
Internal failure costs
External failure costs

Correct Answer:

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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