Blackboard 9:17 PM PROBLEM V Sammy, Inc. manufactures motor scooters. For each o

Question

Blackboard 9:17 PM PROBLEM V Sammy, Inc. manufactures motor scooters. For each of the following examples of quality cost, indicate which of the following quality cost categories each example represents: prevention costs, appraisal costs, internal failure costs, or external failure costs . Preventive maintenance on machinery 2. Direct materials, direct labor, and manufacturing overhead incurred to rework a defective scooter that is detected in-house through inspection 3. Lost profits form lost sales if the company's reputation is hurt because customers previously purchased a poor- quality scooter 4. Cost of inspecting raw materials, such as chassis and wheels. 5. Working with suppliers to achieve on- time delivery of defect-free raw materials 6. Cost of warranty repairs on a scooter that malfunctions at a customer's location 7. Cost of testing durability of vinyl Cost to reinspect reworked scooters 8.

Explanation / Answer

All costs are classified on the basis of concept of Total Quality Management (TQM)

Question no. Cost Classification, as asked 1 Prevention Cost 2 Internal Failure Cost 3 External Failure Cost 4 Prevention COst 5 Appraisal Cost 6 External Failure Cost 7 Appraisal Cost 8 Internal Failure Cost

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