Listed below are a number of costs that are incurred in connection with a company’s quality control system.
(a) Product testing

(b) Product recalls

(c) Rework labour and overhead

(d) Quality circles

(e) Downtime caused by defects

(f) Cost of field servicing

(g) Inspection of goods

(h) Quality engineering

(i) Warranty repairs

(j) Statistical process control

(k) Net cost of scrap

(l) Depreciation of test equipment

(m) Returns and allowances arising from poor quality

(n) Disposal of defective products

(o) Technical support to suppliers

(p) Systems development

(q) Warranty replacements

(r) Field testing at customer site

(s) Product design

Required
1. Classify each of the costs above into one of the following categories: prevention cost, appraisal cost, internal failure cost or external failure cost.
2. Which of the costs in Requirement 1 above are incurred in an effort to keep poor quality of conformance from occurring? Which of the costs in Requirement 1 are incurred because poor quality of conformance has occurred?