Question

From the list below, select the items that are classified as a materials activity. (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answers and double click the box with the question mark to empty the box for a wrong answers.)
a. External failure costs
b. Appraisal costs
c. Internal failure costs
d. Prevention costs

Answer 1

Answer:

The items that are classifies as a materials activity includes options:    

A) External failure costs

B)  Appraisal costs

C) Internal failure costs

D)  Prevention costs

Explanation:

External Failure Costs are incurred due to product failures after being sold to customers. they include legal fees from lawsuits, loss of future sales from disgruntled customers

Appraisal cost includes the cos used by a business analyst to evaluate the budget for materials management

Internal Failure costs are the costs of quality based on products that are discovered before they leave the factory. They can be discovered by Internal workings of the firm spearheaded by the quality control team.

Prevention costs are expenses that are incurred to set up structures that will mitigate the number of defects in the products manufactured by a company. For example, cost of training operations staff to ensure they understand how to manufacture effectively.

Answer 2

Answer:

(b) Internal failure costs (d) Prevention cost

Explanation:

(a) External failure costs are those costs incurred due to product failures after they have been sold to customers. These costs include: Legal fees related to customer lawsuits. Loss of future sales from dissatisfied customers.

b) Appraisal costs are a specific category of quality control costs. Companies pay appraisal costs as part of the quality control process to ensure that their products and services meet customer expectations and regulatory requirements. These costs could include expenses for field tests and inspections

(c) Internal failure costs are those costs of quality associated with product failures that are discovered before a product leaves the factory. These failures are discovered through the firm's internal inspection processes.

(d) Prevention costs are those costs incurred to avoid or minimize the number of defects at first place are known as prevention costs. Some examples of prevention costs are improvement of manufacturing processes, workers training, quality engineering, statistical process control