sammy inc manufactures motor scooters consider each of the f 272479

Sammy, Inc., manufactures motor scooters. Consider each of the following examples of quality costs.

_____1. Preventive maintenance on machinery.

_____2. Direct materials, direct labor, and manufacturing overhead costs incurred to rework a defective scooter that is detected in house through inspection.

_____3. Lost profits from lost sales if company’s reputation was hurt because customers previously purchased a poor quality scooter.

_____4. Costs of inspecting raw materials, such as chassis and wheels.

_____5. Working with suppliers to achieve on time delivery of defect free raw materials.

_____6. Cost of warranty repairs on a scooter that malfunctions at customer’s location.

_____7. Costs of testing durability of vinyl.

_____8. Cost to re inspect reworked scooters.

Requirement

1. Indicate which of the following quality cost categories each example represents.

?? P Prevention costs

?? A Appraisal costs

?? IF Internal failure costs

?? EF External failure costs

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