Listed Below Are 6 Items Concerned with Quality

question 105

Essay

Listed below are 6 items concerned with quality.
Required: Classify each of these items into its appropriate Cost-of-Quality (COQ)category.
(1)Establish a 24-hour hot line for customers to report quality failures.
(2)Establish a quality-inspection program.
(3)Re-design parts and components to simplify manufacturing of the product.
(4)Hire additional field service people to provide better services.
(5)Extend the warranty period for products from 90 days to one year.
(6)Train employees on the importance of zero defects.

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Definitions:

Shipping Costs

Expenses associated with the delivery of goods from the manufacturing point to the customer or distribution center.

Variable Manufacturing Cost

Costs that fluctuate with the level of production output, such as raw materials and direct labor.

Fixed Manufacturing Cost

Overheads that do not change with the level of manufacturing output, including salaries of permanent staff and rent.

Annual Impact

The effect or influence that something has over the course of a year, often used in the context of financial, environmental, or social effects.