CLASSIFICATION OF QUALITY COSTS

Classify the following quality costs as prevention, appraisal, internal failure, or external failure. Also, label each cost as variable or fixed with respect to sales volume.

1. Quality engineering

2. Scrap

3. Product recalls

4. Returns and allowances because of quality problems

5. Sales data re entered because of keying errors

6. Supervision of in process inspection

7. Quality circles

8. Component inspection and testing

9. Quality training

10. Reinspection of reworked product

11. Product liability

12. Internal audit assessing the effectiveness of quality system

13. Disposal of defective product

14. Downtime attributable to quality problems

15. Quality reporting

16. Proofreading

17. Correction of typing errors

18. In process inspection

19. Process controls

20. Pilot studies