Zagart's Zambonis Manufactures Zambonis (Ice Rink Machines) Which Is True?
A)Prevention Costs Are $116,000
B)Appraisal Costs Total

question 13

Multiple Choice

Zagart's Zambonis manufactures Zambonis (ice rink machines) . Its cost of quality data appears below. Total manufacturing cost this year was $4.6 million. $$\begin{array} { | l | r | } \hline & \$\text { thou } \\\hline \text { Engineering tests at supplier's factory } & 18 \\\hline \text { Field testing new product } & 12 \\\hline \text { Inspection costs } & 42 \\\hline \text { Process re-engineering } & 50 \\\hline \text { Product redesign } & 42 \\\hline \text { Rework } & 45 \\\hline \text { Sales returns (at cost) } & 105 \\\hline \text { Scrap } & 22 \\\hline \text { Training employees on new system } & 6 \\\hline \text { Warranty repairs } & 60 \\\hline \text { Waste } & 14 \\\hline \text { Total } & \underline{416} \\\hline\end{array}$$ Which is true?

• A)Prevention costs are $116,000
• B)Appraisal costs total $72,000
• C)Internal failure costs amount to $186,000
• D)External failure cost ZZ $105,000
• E)None of the above