The Door Company Manufactures Doors

question 3

Essay

The Door Company manufactures doors. Classify each of the following quality costs as prevention costs, appraisal costs, internal failure costs, or external failure costs.
a. Retesting of reworked products
b. Downtime due to quality problems
c. Analysis of the cause of defects in production
d. Depreciation of test equipment
e. Warranty repairs
f. Lost sales arising from a reputation for poor quality
g. Quality circles
h. Rework direct manufacturing labor and overhead
i. Net cost of spoilage
j. Technical support provided to suppliers
k. Audits of the effectiveness of the quality system
l. Plant utilities in the inspection area
m. Reentering data because of keypunch errors

Understand how performance appraisals can influence pay reviews and organizational policies.

Recognize the importance of fairness and accuracy in performance appraisals.

Understand the characteristics of effective performance appraisal measures.

Recognize different types of performance appraisal methods and their definitions.

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Definitions:

Abrupt Price Drop

A rapid and significant decrease in the market price of a security or commodity.

Blanket Liens

A legal claim allowing a lender to seize nearly all of a borrower's assets if they default on a loan.

Chattel Mortgage

A loan arrangement in which an item of movable personal property acts as security for the loan, often used in the financing of vehicles and equipment.

Speculative Demand

The demand for a good or asset based on expectations of future price changes, rather than its intrinsic value or productive use.