The following costs were incurred by Home Master, a company that makes washing machines.a.The company requires each machine to complete 5 spin cycles before it is boxed and shipped. b.The company replaced switches on 10% of machines sold last year. c.Cost of rewiring the machines that failed the 5-spin cycle test. d.The company sent its machine inspectors to a two-week training program on the new model that is to be released this year. It is hoped that this will lower the defect rate on the new model.Required: Classify each of these costs as a prevention, appraisal, internal failure, or external failure cost.
What will be an ideal response?
a. | appraisal cost |
b. | external failure cost |
c. | internal failure cost |
d. | prevention cost |
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