Problem based on appraisal cost for quality


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

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Other Management: Problem based on appraisal cost for quality
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