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Strat Cost > Chapter 6 > Flashcards

Chapter 6 Flashcards

(68 cards)

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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
warranty cost/field service
external failure cost
26
scrap disposal
internal failure cost
27
identify products before the products are shipped to customers
appraisal cost
28
depreciation of test equipment
appraisal cost
29
supplies used in testing and inspection
appraisal cost
30
return and allowances arising from quality problems
external failure cost
31
supplier evaluations
prevention cost
32
audits of effectiveness of quality system
prevention cost
33
quality training
prevention cost
34
cost of nonconformance
internal failure cost and external failure cost
35
liability arising from defective products
external failure cost
36
statistical process control activities
prevention cost
37
quality circles
prevention cost
38
debugging of software errors
internal failure cost
39
investments: product redesign, process improvement, equipment maintenance
prevention cost
40
cost of conformance
prevention cost and appraisal cost
41
raw materials inspection
appraisal cost
42
finished product testing and inspection
appraisal cost
43
instructor fees
prevention cost
44
quality engineering
prevention cost
45
cost of quality
cost of nonconformance + cost of conformance
46
rework (M, L, FO)
internal failure cost
47
also called inspection cost
appraisal cost
48
wages and salaries for time spent on training and education
prevention cost
49
technical support provided to supplier
prevention cost
50
training cost
prevention cost
51
field testing and appraisal at customer site
appraisal cost
52
sales returns and allowances
external failure cost
53
systems development
prevention cost
54
maintenance of test equipment
appraisal cost
55
re-entering data because of keying errors
internal failure cost
56
Finished goods inspection
appraisal cost
57
reinspection of reworked products
internal failure cost
58
packaging inspection
appraisal cost
59
contribution margin of lost sales orders
external failure cost
60
test and inspection of incoming materials
appraisal cost
61
results from the identification of defects during the appraisal process
internal failure cost
62
WIP inspection
appraisal cost
63
disposal of defective products
internal failure cost
64
repairs and replacements beyond warranty period
external failure cost
65
product liability lawsuit claim
external failure cost
66
test and inspection of in-process goods
appraisal cost
67
test equipment: depreciation, salaries and wages to equipment operators, maintenance, software
appraisal cost
68
contribution margin of cancelled sales order
external failure cost

Strat Cost (5 decks)

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