Question
A restaurant reports the following quality costs. Prepare a cost of quality report. Training cooks Scrap of incorrectly prepared food Inspecting ingredients from suppliers
A restaurant reports the following quality costs. Prepare a cost of quality report. Training cooks Scrap of incorrectly prepared food Inspecting ingredients from suppliers Free meals due to customer complaints Total $ 30,000 3,000 34,500 7,500 $ 75,000 Cost of Quality Report Quality Category Cost Category Total % of Total Cost of Quality Prevention Training cooks $ 30,000 $ 30,000 35 % Appraisal Inspecting ingredients from suppliers 34,500 34,500 50% Internal failure Scrap of incorrectly prepared food 3,000 3,000 % External failure Free meals due to customer complaints 7,500 7,500 % Total cost of quality $ 75,000 85 %
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