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23) The CEO of Yuppie Prepared Meals is concerned about the amount of resources currently spent on customer warranty claims. Each box of snacks is
23) The CEO of Yuppie Prepared Meals is concerned about the amount of resources currently spent on customer warranty claims. Each box of snacks is printed with the guarantee: "Satisfaction guaranteed or your money back." Since the claims are so high, she would like to evaluate what costs are being incurred to ensure the quality of the product. The following information was collected from various departments within the company: Warranty claims Cost of defective products found at the inspection point Training factory personnel $315,000 70,000 20,000 130,000 Recall of Batch # 59374 Inspecting products when halfway through the production process 45,000 Cost of disposing of rejected products Preventive maintenance on factory equipment 9,000 5,000 12,000 4,000 Production loss due to machine breakdowns Inspection of raw materials As the new cost accountant the CEO has requested that you complete the following Cost of Quality Report (12 marks): Percentage of Total Costs Total Costs Costs of Quality of Quality Incurred Prevention Costs: Total prevention costs Appraisal Costs: -13- acc Total appraisal eosts Internal Failure Cost Total Internal Failure costs External Failure Cost Total esternal ailure costs Total costs of quality 24) What are the four primary responsibilities of managers as described in Chapter 17 Give an example of each type of responsibility. (12 marks)
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