- What Will Be the Total External Failure Cost Appearing

question 136

Multiple Choice

$\begin{array}{l}\text { Thais Company's quality cost report is to be based on the following data: }\\\begin{array} { | l | r | } \hline \text { Liability arising from defective products } & \$ 65,000 \\\hline \text { Lost sales due to poor quality } & \$ 61,000 \\\hline \text { Test and inspection of in-process goods } & \$ 57,000 \\\hline \text { Quality circles } & \$ 27,000 \\\hline \text { Net cost of spoilage } & \$ 103,000 \\\hline \text { Debugging software errors } & \$ 39,000 \\\hline \text { Rework labour and overhead } & \$ 105,000 \\\hline \text { Final product testing and inspection } & \$ 42,000 \\\hline \text { Statistical process control activities } & \$ 71,000 \\\hline\end{array}\end{array}$
- What will be the total external failure cost appearing on the quality cost report?

• A) $100,000.
• B) $126,000.
• C) $373,000.
• D) $570,000.

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Definitions:

Boycott

An attempt to keep people from purchasing the products of a company.