$\text { Eacker Company's quality cost report is to be based on the following data: }$

question 35

Multiple Choice

$\text { Eacker Company's quality cost report is to be based on the following data: }$
$\begin{array}{|l|r|}\hline \text { Quality engineering } & \$ 72,000 \\\hline \text { Net cost of spoilage } & \$ 70,000 \\\hline \text { Re-entering data because of keying errors } & \$ 88,000 \\\hline \text { Test and inspection of incoming materials } & \$ 68,000 \\\hline \text { Test and inspection of in-process goods } & \$ 97,000 \\\hline \text { Technical support provided to suppliers } & \$ 83,000 \\\hline \text { Maintenance of test equipment } & \$ 31,000 \\\hline \text { Product recalls } & \$ 73,000 \\\hline \text { Warranty repairs and replacements } & \$ 46,000 \\\hline\end{array}$
- What will be the total prevention cost appearing on the quality cost report?

• A) $103,000.
• B) $145,000.
• C) $151,000.
• D) $155,000.

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Definitions:

Major Policy Changes

Substantial alterations in the rules or guidelines that govern an organization or society's operations.

Floor Representative

An individual chosen to represent the interests or concerns of a group in a designated area, such as in legislative bodies or residential communities.

Dormitory

A residence hall providing sleeping and living quarters for large numbers of people, typically students in colleges or universities.

Cognitive Dissonance

A state of mental discomfort occurring when a person holds two or more contradictory beliefs, ideas, or values at the same time.