Water Industries' quality control report for August contains the following items: Gathering, analysis, and reporting quality data$1,000 Inspecting raw materials received from vendors 2,000 Testing and inspecting finished products 3,000 Visiting customer sites to test product 4,000 Designing product to reduce production problems 5,000 Repairing and/or replacing products under warranty 6,000 Maintaining equipment used to gather production quality data 7,000 Cost (net) of materials wasted during production 8,000 What would be the total of the external failure costs on the August quality control report for Water Industries?
A. $7,000.
B. $6,000.
C. $4,000.
D. $14,000.
Answer: B
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