Classify each of the following as Prevention (P), Appraisal or Inspection (AI), Internal Failure (IF), or External

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Classify each of the following as Prevention (P), Appraisal or Inspection (AI), Internal Failure (IF), or External Failure (EF) costs.
_____ 1. Cost of scrapped product.
_____ 2. Damage to company’s reputation.
_____ 3. Cost of rework.
_____ 4. Quality training.
_____ 5. Costs of the quality control department.
_____ 6. Cost of downtime created by quality problems.
_____ 7. Simplifying the product design to reduce defects.
_____ 8. Product replacement costs.

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Managerial Accounting

ISBN: 978-1260413984

4th edition

Authors: Stacey Whitecotton, Robert Libby, Fred Phillips

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