The costs that follow appeared on Shawnah's quality cost report:
The sum of Shawnah's prevention and external failure costs is:

Question

The costs that follow appeared on Shawnah's quality cost report: 
The sum of Shawnah's prevention and external failure costs is:

Quizplus · Accepted Answer

According to the information provided, we need to calculate the sum of prevention and external failure costs. 
Prevention costs include the cost of activities that are designed to prevent poor quality from occurring. 
External failure costs include the cost of defects that are found by customers, such as warranty repairs, product returns, or legal actions.

From the table, we can see that the prevention costs are $40,000 and the external failure costs are $37,200. So, the sum of these costs is:
$40,000 + $37,200 = $77,200

Therefore, the correct answer is B.

The Costs That Follow Appeared on Shawnah's Quality Cost Report