Using the Abbreviations Listed Below, Indicate for Each of the Costs

question 53

Essay

Using the abbreviations listed below, indicate for each of the costs whether the cost should be classified as: $\begin{aligned} \mathrm { P } & = \text { Prevention } \\ \mathrm { A } & = \text { Appraisal } \\ \mathrm { I } & = \text { Internal Failure } \\ \mathrm { E } & = \text { External Failure } \\ \mathrm { N } & = \text { None of the above } \end{aligned}$
1. Cost of recalling defective products
2. Design reviews
3. Downtime due to defects
4. Field testing
5. Inspection of work in process
6. Lost sales due to poor product performance
7. Process acceptance
8. Quality training programs
9. Scrap
10. Supplier evaluations

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Definitions:

Open Economy

An economy that engages in international exchange of goods, services, and capital.

National Saving

The total amount saved by the government, households, and the business sector in an economy.

Net Capital Outflow

The difference between the purchase of domestic assets by foreigners and the purchase of foreign assets by domestic residents over a specific period, reflecting the flow of capital out of and into a country.

Buy American Campaign

A movement encouraging consumers to purchase goods made in the United States in order to support domestic businesses and labor.