HNW Ltd
HNW Ltd -What Are HNW's Total Appraisal (Detection)costs?
A) $130 000
B)

question 76

Multiple Choice

HNW Ltd.
HNW Ltd. manufactures and sells food processors. A popular consumer magazine has recently evaluated food processors and has ranked HNW’s processors as being of ‘poor quality’. As a result, HNW’s management team has begun to analyse all costs associated with their food processors in more detail, and the following data has been compiled:
$\begin{array}{lr}\text { Scrap costs } & \$ 80000 \\\text { Quality training } & 75000 \\\text { Warranty claims } & 100000 \\\text { Rework costs } & 50000 \\\text { Inspection of incoming materials } & 30000 \\\text { Product quality audits } & 60000 \\\text { Statistical nrocess control } & 40000\end{array}$
-What are HNW's total appraisal (detection) costs?

• A) $130 000
• B) $205 000
• C) $ 90 000
• D) $100 000

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Definitions:

Automobile-To-Automobile Variability

Variation in characteristics or properties observed between different automobiles.

Miles Per Gallon

A measure of fuel efficiency in vehicles, representing the number of miles a vehicle can travel per gallon of fuel.

Degrees of Freedom

The number of independent pieces of information available to estimate another piece of information or the parameters of a model.

Treatments

The conditions or interventions applied to participants in an experimental study.