Question: The cost analyst at Computer Point, Inc. has identified the following costs (given in the table) over the last month. Classify these costs into different

The cost analyst at Computer Point, Inc. has identified the following costs (given in the table) over the last month. Classify these costs into different cost categories (prevention, appraisal, internal failure, external failure); based on your classification, where/which area should the firm focus/prioritize their quality efforts on?

Please show work.

Cost Amount
Rework $153,000
Rejected disks (loaded) $22,950
Rejected disks (blank) $13,770
Inspection costs (extra)--incoming $104,040
Inspection costs (extra)--outgoing $49,725
Customer returns $275,400
Training and system improvement costs $21,420
System downtime $67,320

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