HNW Ltd
HNW Ltd -What Are HNW's Total External Failure Costs?
A) $130 000

question 86

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 external failure costs?

• A) $130 000
• B) $160 000
• C) $180 000
• D) $100 000

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Definitions:

System Knowledge

Understanding of how a particular set of rules, procedures, and operations work within a specific system.

Secretarial Personnel

Employees who perform administrative and clerical duties, often assisting executives and managing office operations.

Recent University Graduates

Individuals who have completed their degree or diploma courses from a university or college and have just entered the job market.

Compensation System

An organized approach implemented by businesses to pay and reward employees for their contributions to the organization.