Creed Napier, the regional manager of E-Taxes, Inc., is evaluating the performance of four ecommerce tax preparation
Question:
Creed Napier, the regional manager of E-Taxes, Inc., is evaluating the performance of four ecommerce tax preparation sites in her region. The following data for the past six months were presented to her by each site in accordance with the company’s costs-of-quality standards of performance:
Required
1. For each site, compute the percentages of sales represented by prevention costs, appraisal costs, total costs of conformance, internal failure costs, external failure costs, total costs of nonconformance, and total costs of quality.
2. For each site, calculate the ratio of costs of conformance to costs of quality and the ratio of costs of nonconformance to costs of quality.
3. Manager Insight: Interpret the cost-of-quality data for each site. Rank the sites in terms ofquality.
Step by Step Answer:
Managerial Accounting
ISBN: 9780538742801
11th Edition
Authors: Susan V. Crosson, Belverd E. Needles