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

a.	Product	k.	Net cost of scrap
b.	Product recalls.	l.	Depreciation of test equipment.
c.	Rework labor and overhead.	m.	Returns and allowances arising from poor quality.
d.	Quality circles.	n.	Disposal of defective products.
e.	Downtime caused by defects.	o.	Technical support to suppliers
f.	Cost of field servicing	p.	Systems development
g.	Inspection of goods.	q.	Warranty replacements.
h.	Quality engineering.	r.	Field testing at customer site.
i.	Warranty repairs	s.	Product design
j.	Statistical process control.

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 (1) above are incurred in an effort to keep poor quality of conformance from occurring? Which of the costs in (1) above are incurred because poor quality of conformance has occurred?