Costs of quality. Ditto Industries manufactures copy machines. The following presents financial information for two years. a.

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Costs of quality. Ditto Industries manufactures copy machines. The following presents financial information for two years. image text in transcribed

a. Classify the above items into prevention, appraisal, internal failure, or external failure costs.

b. Calculate the percentage of each prevention, appraisal, internal failure, and external failure cost to sales for Year 1 and Year 2.

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Managerial Accounting An Introduction To Concepts Methods And Uses

ISBN: 9780030259630

7th Edition

Authors: Michael W. Maher, Clyde P. Stickney, Roman L. Weil, Sidney Davidson

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Question Posted: Jun 21, 2024 09:03 AM

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Costs of quality. Ditto Industries manufactures copy machines. The following presents financial information for two years. a.

Question:

Year 1 Year 2 Sales. $2,000,000 $1,800,000 Quality Costs: Scrap 15,000 16,000 Repair of returned goods 35.000 40,000 Dealing with customer complaints 23,000 28.000 Rework (goods spoiled during production) 150.000 150.000 Materials inspection 55,000 40,000

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Managerial Accounting An Introduction To Concepts Methods And Uses

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