- What Will Be the Total External Failure Cost Appearing

question 163

Multiple Choice

$\begin{array}{l}\text { Eade Company's quality cost report is to be based on the following data: }\\\begin{array} { | l | r | } \hline \text { Systems development } & \$ 32,000 \\\hline \text { Final product testing and inspection } & \$ 13,000 \\\hline \text { Quality data gathering, analysis, and reporting } & \$ 11,000 \\\hline \text { Net cost of scrap } & \$ 62,000 \\\hline \text { Returns arising from quality problems } & \$ 59,000 \\\hline \text { Amortization of test equipment } & \$ 57,000 \\\hline \text { Rework labour and overhead } & \$ 18,000 \\\hline \text { Test and inspection of incoming materials } & \$ 40,000 \\\hline \text { Product recalls } & \$ 36,000 \\\hline\end{array}\end{array}$
- What will be the total external failure cost appearing on the quality cost report?

• A) $54,000.
• B) $95,000.
• C) $175,000.
• D) $328,000.

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Definitions:

Standard Deviation

A measure of the amount of variation or dispersion of a set of values.

Mean Age

An arithmetic average age of all the individuals in a given group or sample.

Range

The difference between the highest and lowest scores in a set of data, indicating the spread or variability of the dataset.

Distribution

In business, refers to the process of making a product or service available to the consumer or business user who needs it. In statistics, it describes the way in which values in a dataset are spread out.