Question: An increase in appraisal costs in a quality improvement program would usually have the following initial effects on internal and external failure costs: Internal failure

An increase in appraisal costs in a quality improvement program would usually have the following initial effects on internal and external failure costs:
Internal failure costsExternal failure costsA)IncreaseIncreaseB)IncreaseDecreaseC)DecreaseIncreaseD)DecreaseDecrease
An increase in appraisal costs in a quality improvement program would usually have the following initial effects on internal and external failure costs:
Internal failure costsExternal failure costsA)IncreaseIncreaseB)IncreaseDecreaseC)DecreaseIncreaseD)DecreaseDecrease
Choice C
Choice B
Choice D
Choice A
What would be the total prevention cost appearing on the quality cost report?
Eagleson Company's quality cost report is to be based on the following data:
Net cost of scrap$ 75,000Liability arising from defective products$ 32,000Warranty repairs and replacements$ 80,000Re-entering data because of keying errors$ 75,000Supplies used in testing and inspection$ 18,000Quality data gathering, analysis, and reporting$ 62,000Final product testing and inspection$ 21,000Test and inspection of in-process goods$ 44,000Systems development$ 45,000
What would be the total prevention cost appearing on the quality cost report?
$125,000
$89,000
$107,000
$84,000

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