Some of the costs in the list below are costs of quality. For each cost, indicate by
Question:
a. Cost of raw materials used in discarded, defective products
b. Salary of the company’s president
c. Cost to purchase product testing equipment
d. Lawsuit settlements from defective products
e. Cost to repair defective products before shipment
f. Employee quality training costs
g. Employee downtime caused by production halts to repair defective products
h. Cost of sampling raw materials to ensure quality
i. Customer warranty costs
j. Property taxes
k. Cost of lost reputation (i.e., lost sales)
l. Cost to help suppliers improve product shipping procedures
m. Interest cost on short-term loans
n. Production process design costs
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Related Book For
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
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