The Farber Company Recorded the Following Costs of Quality During

question 27

Multiple Choice

The Farber Company recorded the following costs of quality during the current period: $$\begin{array} { l r } \text { Downtinne } & \$ 1,500 \\\text { Inspection } & 1,000 \\\text { Product desipn } & 4,000 \\\text { Reliability testing upon completion of production } & 2,500 \\\text { Restocking and packaging } & 1,500 \\\text { Training } & 3,000 \\\text { Warranty repairs ard replacernents } & \underline{2,500} \\\text { Total Costs of Quality } & \underline{ \$ 16,000} \\\end{array}$$ Which choice below represents the correct amount of prevention and appraisal costs?
$\begin{array} { l l l l } & \text { Prevention } & \text { Appraisal } \\\end{array}$
A. $\begin{array} { l l l l } & \$ 4,000 & & \$ 1,000 \\\end{array}$
B. $\begin{array} { l l l l } & \$ 3,000 & & \$ 1,000 \\\end{array}$
C. $\begin{array} { l l l l } & \$ 7,000 & & \$ 3,500 \\\end{array}$
D. $\begin{array} { l l l l } & \$ 3,000 & & \$ 2,500\end{array}$

• A) Choice A
• B) Choice B
• C) Choice C
• D) Choice D

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Definitions:

Defective Bolts

A term referring to bolts that fail to meet quality standards or specifications, potentially leading to failures in applications.

Probability

A gauge of event occurrence likelihood, denoted by a number from 0 to 1.

Probability Distribution

A function in mathematics that calculates the chances of various outcomes happening in an experiment.

E(x)

The expected value of a random variable, representing the mean or average value the variable takes over a large number of experiments or trials.