- What Will Be the Total External Failure Cost Appearing

question 199

Multiple Choice

$\begin{array}{l}\text { Eagan Company's quality cost report is to be based on the following data: }\\\begin{array} { | l | r | } \hline \text { Quality training } & \$ 75,000 \\\hline \text { Lost sales due to poor quality } & \$ 94,000 \\\hline \text { Test and inspection of in-process goods } & \$ 37,000 \\\hline \text { Test and inspection of incoming materials } & \$ 65,000 \\\hline \text { Disposal of defective products } & \$ 86,000 \\\hline \text { Quality data gathering, analysis, and reporting } & \$ 92,000 \\\hline \text { Net cost of spoilage } & \$ 27,000 \\\hline \text { Supervision of testing and inspection activities } & \$ 10,000 \\\hline \text { Product recalls } & \$ 38,000 \\\hline\end{array}\end{array}$
- What will be the total external failure cost appearing on the quality cost report?

• A) $124,000.
• B) $132,000.
• C) $245,000.
• D) $524,000.

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Definitions:

Transformation

The process of changing a substance, compound, or molecule into a new and different substance through a chemical reaction.

Reagents

Substances used in chemical reactions to cause or analyze a reaction.

Synthetic Scheme

A specific sequence of reactions designed to construct complex molecules from simpler ones.

Flaw

An imperfection or defect in something, which might impair its functionality or reduce its effectiveness.