ACC 801 Study Guide - Midterm Guide: Quality Costs, Iso 9000, Product Liability

• School: Ryerson University
• Department: Accounting
• Course: ACC 801
• Professor: George Gekas

Document Summary

Costs of quality are those that exist because poor quality or potential for poor quality. Examples : quality training, quality audits market research, design reviews, Prototype inspection: appraisal costs: are incurred to determine whether products and services are conforming to their requirements or customer needs. Internal failure costs: this nonconformance is detected prior to the product being shipped or the service being delivered to outside parties. Design and process changes: external failure: this nonconformance is detected after being delivered to outside parties. Examples: recalls, returns and allowances, warranties, discounts due to defects, lost sales. Quality costs examples, prevention costs, quality engineering, quality training, proper recruiting, Design reviews, quality circles market research, vendor certification, prototype inspection. Inspection of materials, inspection of packaging, product acceptance, process acceptance, field testing, continuing supplier inspection& approval. Scrap, rework, design changes, repairs, re inspection, re testing. Returns and allowances, warranty costs, discounts due to defects, recalls, product liability, ill will,