Bradford Inc.
Bradford Inc. manufactures and sells digital cameras. Bradford’s management team has begun an intensive program whereby more time and effort are to be focused on product quality than were focused on in the past. The following data has been compiled regarding expected quality costs in the upcoming year:
$$\begin{array} { l r }
\text { Product quality audits } & \$ 60000 \
\text { Quality training } & 50000 \
\text { Rework costs } & 80000 \
\text { Warranty claims } & 40000 \
\text { Inspection of incoming materials } & 25000 \
\text { Scrap costs } & 20000 \
\text { Statistical process control } & 35000
\end{array}$$
-What are Bradford's total internal failure costs?

Question

Bradford Inc.
Bradford Inc. manufactures and sells digital cameras. Bradford’s management team has begun an intensive program whereby more time and effort are to be focused on product quality than were focused on in the past. The following data has been compiled regarding expected quality costs in the upcoming year:
$$\begin{array} { l r } 
\text { Product quality audits } & \$ 60000 \
\text { Quality training } & 50000 \
\text { Rework costs } & 80000 \
\text { Warranty claims } & 40000 \
\text { Inspection of incoming materials } & 25000 \
\text { Scrap costs } & 20000 \
\text { Statistical process control } & 35000
\end{array}$$
-What are Bradford's total internal failure costs?

Quizplus · Accepted Answer

Internal failure costs are costs associated with defects found before the product reaches the customer. For Bradford Inc., these include Rework costs ($80,000) and Scrap costs ($20,000), totaling $100,000.

Bradford Inc -What Are Bradford's Total Internal Failure Costs? A) $160 000

Bradford Inc -What Are Bradford's Total Internal Failure Costs?
A) $160 000