What type of quality costs would the torn PUMA soccer jerseys be considered? Original blog posting (June 30, 2016)

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Presentation transcript:

What type of quality costs would the torn PUMA soccer jerseys be considered? Original blog posting (June 30, 2016)

PUMA Torn Soccer Jerseys In June 2016, at a European Championship soccer game at least four of Switzerland’s jerseys were torn PUMA, a global sportswear company based in Germany, manufactured these jerseys The yarns used in the fabric were found to have been damaged during production The rest of PUMA’s inventory was inspected – no problems were found Source: http://www.footyheadlines.com/2016/06/switzerlands-puma-shirts-break-under-pressure.html

Question 1 What costs would PUMA incur related to the defective jerseys?

Question 2 What type of quality cost would the costs associated with these defective jerseys be considered: prevention, appraisal, internal failure, or external failure?

Question Recap What costs would PUMA incur related to the defective jerseys? What type of quality cost would the costs associated with these defective jerseys be considered: prevention, appraisal, internal failure, or external failure?

For additional news stories to use in the accounting classroom, see the Accounting in the Headlines blog at http://accountingintheheadlines.com/ Questions or comments? Contact Dr. Wendy Tietz at wtietz@kent.edu