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Unformatted text preview: Problem 1 - The Door Company manufactures doors. Classify each of the following quality costs as prevention costs, appraisal costs, internal failure costs, or external failure costs. (13 points) a. internal failure costs b. internal failure costs c. internal failure costs d. appraisal costs e. external failure costs f. external failure costs g. prevention costs h. internal failure costs i. internal failure costs j. prevention costs k. appraisal costs l. appraisal costs m. internal failure costs & external failure costs Problem 2 - For supply item ABC, Andrews Company has been ordering 125 units based on the recommendation of the salesperson who calls on the company monthly. A new purchasing agent has been hired by the company who wants to start using the economic-order-quantity method and...
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- Spring '11