199) Appraisal costs incurred to detect poor-quality goods or services.
200) : 1876962
199) Appraisal costs are incurred to detect poor-quality goods or services.
200) External failure costs occur when the company detects and corrects poor-quality goods or services after delivery to customers.
201) Inspection of incoming raw materials and production loss caused by downtime are examples of prevention costs.
202) External failure costs occur when poor-quality goods or services are not detected until after delivery to customers.
203) Product testing is an appraisal cost.
204) An example of an appraisal cost is the cost of automating the production process.
205) The cost of training employees would be classified as a prevention cost.
206) An example of a prevention cost is the cost of redesigning the product to reduce its complexity.
207) Quality-related costs generally fall into four different categories, which include all of the following except
A) prevention costs.
B) appraisal costs.
C) internal failure costs.
D) transportation costs.
208) On a Cost of Quality report, which of the following cost items should be classified as a prevention cost?
A) Technical support provided to suppliers
B) Warranty expenses on defective products
C) Supervision of quality inspections
D) Net cost of spoiled units