Thais Company's quality cost report is to be based on the following data:

-What will be the total external failure cost appearing on the quality cost report?
A) $100,000.
B) $126,000.
C) $373,000.
D) $570,000.

Question

Thais Company's quality cost report is to be based on the following data:

-What will be the total external failure cost appearing on the quality cost report?
A) $100,000. 
B) $126,000. 
C) $373,000. 
D) $570,000.

Quizplus · Accepted Answer

The total external failure cost would be the sum of product returns, warranty claims, and lost sales due to quality issues, which is $80,000+$35,000+$11,000=$126,000.

Thais Company's Quality Cost Report Is to Be Based on the Following