- What Will Be the Total External Failure Cost Appearing

question 143

Multiple Choice

$\begin{array}{l}\text { Faast Company's quality cost report is to be based on the following data: }\\\begin{array} { | l | r | } \hline \text { Quality engineering } & \$ 86,000 \\\hline \text { Quality circles } & \$ 53,000 \\\hline \text { Supervision of testing and inspection activities } & \$ 92,000 \\\hline \text { Net cost of scrap } & \$ 96,000 \\\hline \text { Test and inspection of in-process goods } & \$ 16,000 \\\hline \text { Liability arising from defective products } & \$ 13,000 \\\hline \text { Warranty repairs and replacements } & \$ 62,000 \\\hline \text { Debugging software errors } & \$ 86,000 \\\hline \text { Rework labour and overhead } & \$ 29,000 \\\hline\end{array}\end{array}$
- What will be the total external failure cost appearing on the quality cost report?

• A) $75,000.
• B) $109,000.
• C) $286,000.
• D) $533,000.

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Definitions:

Innovation

The process of developing new ideas, methods, or products to improve or replace existing ones.

Protection Of One's Turf

The actions individuals or groups take to safeguard their interests or areas of responsibility, often against perceived threats or encroachments.

Laying Off Employees

The process of either temporarily or permanently dismissing staff members from their jobs, typically as a result of economic declines or changes within the organization.

Workforce Reduction

The process of decreasing a company's employee numbers as part of a strategy to cut costs, improve efficiency, or adjust to market demands.