27.5

Cont of Reun ity and Value-Added/Non-Value-Added Reports for a Service Company Seven Seas Inc. provides cable TV and Internet service to the local community. The activities and activity casts of Seven Seas are identified. a. Identify the cost of quality classification for each activity and whether the activity is value-added or non-value-added. b. Prepare a cost of quality report, Assume that sales are $2,350,000. If required, round percentages to one decimal place. T Checi My Work b. Classity each activity as either prevention, appraisal, internal failure or external failure. Lst the total costs of each of these fou categories in a column called quality cost. In a separate column, determine the percent of each quality cost as compared to the to quafity costs by dividing individual quality cost categories by the total quality cost. In another column, determine the percent of e quality cost ciassification as compared to total sales by dividing individual quality cost classes by the total sales ampunt. Total all c. Prepare a value-addedon-value-added analysis, If required, round percentages to one decimal place. Feedback r Oneck My Work c. Reclassify the individual activities as value-added and non-value-added. Calculate the percentage of the total cost added and those that are non-value-added. d. What percentage of total costs of quality are considered to be value-added