HNW Ltd.
HNW Ltd. manufactures and sells food processors. A popular consumer magazine has recently evaluated food processors and has ranked HNW’s processors as being of ‘poor quality’. As a result, HNW’s management team has begun to analyse all costs associated with their food processors in more detail, and the following data has been compiled:
$\begin{array}{lr}
\text { Scrap costs } & \$ 80000 \
\text { Quality training } & 75000 \
\text { Warranty claims } & 100000 \
\text { Rework costs } & 50000 \
\text { Inspection of incoming materials } & 30000 \
\text { Product quality audits } & 60000 \
\text { Statistical nrocess control } & 40000
\end{array}$
-What are HNW's total prevention costs?
A) $ 30 000
B) $165 000
C) $105 000
D) $ 75 000

Question

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The Answer of HNW Ltd.
HNW Ltd. manufactures and sells food processors. A popular consumer magazine has recently evaluated food processors and has ranked HNW’s processors as being of ‘poor quality’. As a result, HNW’s management team has begun to analyse all costs associated with their food processors in more detail, and the following data has been compiled:
$\begin{array}{lr}
\text { Scrap costs } & \$ 80000 \
\text { Quality training } & 75000 \
\text { Warranty claims } & 100000 \
\text { Rework costs } & 50000 \
\text { Inspection of incoming materials } & 30000 \
\text { Product quality audits } & 60000 \
\text { Statistical nrocess control } & 40000
\end{array}$
-What are HNW's total prevention costs?
A) $ 30 000
B) $165 000
C) $105 000
D) $ 75 000

HNW Ltd HNW Ltd -What Are HNW's Total Prevention Costs? A) $ 30 000

HNW Ltd
HNW Ltd -What Are HNW's Total Prevention Costs?
A) $ 30 000