The costs that follow appeared on the quality cost report of Greggor Incorporated: $\begin{array} { l r }
\text { Quality training } & \$ 40,000 \
\text { Customer complaints } & 6,500 \
\text { Warranty costs } & 16,000 \
\text { Rework of defective units } & 13,000 \
\text { Raw-materials inspection } & 8,000
\end{array}$ The sum of Greggor's appraisal and internal failure costs is:
A)$8,000.
B)$13,000.
C)$21,000.
D)$77,000.
E)$83,500.

Question

The costs that follow appeared on the quality cost report of Greggor Incorporated: $\begin{array} { l r } 
\text { Quality training } & \$ 40,000 \
\text { Customer complaints } & 6,500 \
\text { Warranty costs } & 16,000 \
\text { Rework of defective units } & 13,000 \
\text { Raw-materials inspection } & 8,000
\end{array}$ The sum of Greggor's appraisal and internal failure costs is:
A)$8,000.
B)$13,000.
C)$21,000.
D)$77,000.
E)$83,500.

Quizplus · Accepted Answer

Appraisal costs include quality training and raw-materials inspection, totaling to $40,000 + $8,000 = $48,000. 
Internal failure costs include rework of defective units and warranty costs, totaling to $13,000 + $16,000 = $29,000. 
The sum of appraisal and internal failure costs is $48,000 + $29,000 = $77,000. 
Therefore, the correct answer is C.

The Costs That Follow Appeared on the Quality Cost Report