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Problem:

The following table lists all costs of quality incurred by Sam's Surf Shop last year.

Required:

Question 1) What was Sam's appraisal cost for quality last year?

Annual inspection costs $ 155,000
Annual cost of scrap materials 286,000
Annual rework cost 34,679
Annual cost of quality training 456,000
Annual warranty cost 1,546,000
Annual testing cost 543,000

Solve the given numerical problem and illustrate step by step calculation.

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91163666

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