Costs of quality fall into four main categories: prevention, appraisal, internal failure, or external failure.

a. Indicate for each of the costs whether it should be classified as a prevention, internal failure, appraisal, or external failure cost.

i. Cancelled sales due to customer dissatisfaction                

ii. Product recalls

iii. Training programs

iv. Inspection of raw materials

v. Machine downtime because of improper maintenance

vi. Seminar with suppliers to discuss ways to reduce costs

vii. Audits of financial statements

viii. Rework of defective products

b. For a company like Publix, whose mission “is to be the premier quality food retailer in the world,” on which categories would you expect it to spend more money? How does this compare to a company like Walmart, whose mission is to “save people money so they can live better”?