Activity-based management information can be used in several ways, including managing quality costs. Various quality-related costs are listed below. Indicate whether each cost most likely relates to a(n): (A)prevention activities, (B)appraisal activities, (C)production activities, or (D)post-sales activities.
____ 1. Routine equipment maintenance
____ 2. Finished product testing before shipment
____ 3. Customer satisfaction surveys
____ 4. Costs of spoilage and rework
____ 5. Warranty repairs
____ 6. Incoming raw materials testing
____ 7. Costs incurred to establish supplier qualifications
____ 8. Extra shipping costs incurred to meet customer deadlines
____ 9. Machinery repair costs
____ 10. Salaries of quality control inspectors
Correct Answer:
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2. A
3. B
4. D
...
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