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?
| 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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