A number of activities that are a part of a company's quality control system are listed below:

Required

1. Classify the costs associated with each of these activities into one of the following categories: prevention cost, appraisal cost, internal fail ure cost, or external failure cost.
2. Which of the four types of costs in (I) above are incurred in an effort to keep poor quality of conformance from occurring? Which of the four types of costs in (1) above are incurred because poor quality of conformance has occurred?

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a. Quality improvement initiatives b. Cost of spoilage c. Inspecting raw materials d. Lawsuit arising from defective products e. Handling customer complaints f. Reprogramming customer database software g. Training finished goods quality inspectors h. Repairs to quality testing equipment i. Disposal of scrap material j. Training instructors of quality programs k. Lost sales arising from product quality concerns 1. Insurance on quality testing equipment m. Training final product testers n. Installing software for use in statistical process control o. Shipping costs for product returns from customers p. Overtime paid for a rush order caused by quality problems with raw materials