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Strat Cost > Chapter 6 > Flashcards

Chapter 6 Flashcards

1
Q

tuition fees for external training

A

prevention cost

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2
Q

customer support

A

external failure cost

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3
Q

quality data gathering, analysis, and reporting

A

prevention cost

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4
Q

supervision of prevention activities

A

prevention cost

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5
Q

product recalls

A

external failure cost

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6
Q

quality improvement projects

A

prevention cost

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7
Q

retesting of reworked products

A

internal failure cost

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8
Q

avoid poor quality goods/services and reduce the no. of defects in production/services

A

prevention cost

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9
Q

cost of field servicing and complaints

A

external failure cost

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10
Q

plant utilities in the inspection area

A

appraisal cost

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11
Q

machine repair cost

A

internal failure cost

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12
Q

loss due to work interruptions

A

internal failure cost

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13
Q

downtime caused by quality problems

A

internal failure cost

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14
Q

planning and execution of a quality program

A

prevention cost

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15
Q

poor-quality goods/services are detected after delivery to customers

A

external failure cost

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16
Q

product recalls

A

external failure cost

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17
Q

supervision of testing and inspection activities

A

appraisal cost

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18
Q

testing equipment

A

prevention cost

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19
Q

customer complaint resolution

A

external failure cost

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20
Q

loss due to downgrades

A

internal failure cost

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21
Q

lost sales arising from reputation for poor quality

A

external failure cost

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22
Q

spoilage

A

internal failure cost

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23
Q

warranty repairs and replacements

A

external failure cost

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24
Q

analysis of the cause of defects in production

A

internal failure cost

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25
Q

warranty cost/field service

A

external failure cost

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26
Q

scrap disposal

A

internal failure cost

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27
Q

identify products before the products are shipped to customers

A

appraisal cost

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28
Q

depreciation of test equipment

A

appraisal cost

29
Q

supplies used in testing and inspection

A

appraisal cost

30
Q

return and allowances arising from quality problems

A

external failure cost

31
Q

supplier evaluations

A

prevention cost

32
Q

audits of effectiveness of quality system

A

prevention cost

33
Q

quality training

A

prevention cost

34
Q

cost of nonconformance

A

internal failure cost and external failure cost

35
Q

liability arising from defective products

A

external failure cost

36
Q

statistical process control activities

A

prevention cost

37
Q

quality circles

A

prevention cost

38
Q

debugging of software errors

A

internal failure cost

39
Q

investments: product redesign, process improvement, equipment maintenance

A

prevention cost

40
Q

cost of conformance

A

prevention cost and appraisal cost

41
Q

raw materials inspection

A

appraisal cost

42
Q

finished product testing and inspection

A

appraisal cost

43
Q

instructor fees

A

prevention cost

44
Q

quality engineering

A

prevention cost

45
Q

cost of quality

A

cost of nonconformance + cost of conformance

46
Q

rework (M, L, FO)

A

internal failure cost

47
Q

also called inspection cost

A

appraisal cost

48
Q

wages and salaries for time spent on training and education

A

prevention cost

49
Q

technical support provided to supplier

A

prevention cost

50
Q

training cost

A

prevention cost

51
Q

field testing and appraisal at customer site

A

appraisal cost

52
Q

sales returns and allowances

A

external failure cost

53
Q

systems development

A

prevention cost

54
Q

maintenance of test equipment

A

appraisal cost

55
Q

re-entering data because of keying errors

A

internal failure cost

56
Q

Finished goods inspection

A

appraisal cost

57
Q

reinspection of reworked products

A

internal failure cost

58
Q

packaging inspection

A

appraisal cost

59
Q

contribution margin of lost sales orders

A

external failure cost

60
Q

test and inspection of incoming materials

A

appraisal cost

61
Q

results from the identification of defects during the appraisal process

A

internal failure cost

62
Q

WIP inspection

A

appraisal cost

63
Q

disposal of defective products

A

internal failure cost

64
Q

repairs and replacements beyond warranty period

A

external failure cost

65
Q

product liability lawsuit claim

A

external failure cost

66
Q

test and inspection of in-process goods

A

appraisal cost

67
Q

test equipment: depreciation, salaries and wages to equipment operators, maintenance, software

A

appraisal cost

68
Q

contribution margin of cancelled sales order

A

external failure cost

Strat Cost (5 decks)

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