Miller Enterprises had sales of $4 million last year. The following expenses wer
ID: 462135 • Letter: M
Question
Miller Enterprises had sales of $4 million last year. The following expenses were some of those incurred by the company last year.
$200,000
$175,000
$120,000
$20,000
$14,000
$12,500
$8,000
$5,200
Given these values, what are this company’s total internal failure costs for last year? Submit your answer as a numerical value WITHOUT A "$".
Advertising$200,000
Returned products$175,000
Cost of training$120,000
Inspection cost$20,000
Cost of rework$14,000
Testing cost$12,500
Cost of scrap$8,000
Lost sales$5,200
Explanation / Answer
Internal failure costs are costs that are caused by products or services not conforming to requirements or customer/user needs and are found before delivery of products and services to external customers
1. returned products.
2. inspection costs
3. re work cost
4. testing cost
5. scrap cost.
total internal failure costs is = 217000.