Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

2.1. Backwoods American, Inc., produces expensive water-repellent down-filled parkas. The company implemented a total quality management program in 2011. Following are quality-related account ing data

image text in transcribed

2.1. Backwoods American, Inc., produces expensive water-repellent down-filled parkas. The company implemented a total quality management program in 2011. Following are quality-related account ing data that have been accumulated for the five-year period after the program's start YEAR 2015 2012 2013 2014 2016 Quality Costs (000s) $3.2 10.7 42.6 Prevention 28.3 50.0 29.2 30.6 24.1 26.3 19.6 Appraisal 39.1 48.4 35.9 32.1 Internal failure 51.3 External 65.2 110.5 105.2 91.3 118.6 failure Accounting Measures (000s) Sales $2,700.6 2,690.1 2,705.3 2,310.2 2,880.7 Manufacturing 420.9 423.4 424.7 435.5 436.1 Cost Compute the company's total failure costs as a percentage of total quality costs for each of the five years. Does there appear to be a trend to this result? If so, speculate caused the trend b. Compute prevention costs and appraisal costs, each as a percent- age of total costs, during each of the five years. Speculate on what the company's quality strategy appears to be c. Compute quality-sales indices and quality-cost indices for each of the five years. Is it possible to assess the effectiveness of the com pany's quality-management program from these index values? a. on what might have

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions