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Cost of Quality and Value Added/Non-Value Added Reports for a Service Company Three Rivers Inc. provides cable TV and Internet service to the local community.

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Cost of Quality and Value Added/Non-Value Added Reports for a Service Company Three Rivers Inc. provides cable TV and Internet service to the local community. The cities and costs of the oversette a. Identify the cost of quality classification for each activity and whether the activity's value-added or non-ve-on. Activity Quality Cost Cost Classification Value-Added/ Non-Value Added Classification $24,400 95.400 52,400 37.100 Quality Control Activities Billing error correction Cable signal testing Reinstalling service (installed incorrectly the first time) Repairing satellite equipment Repairing underground cable connections to the customer Replacing old technology cable with higher quality cable Replacing old technology signal switches with higher quality switches Responding to customer home repair requests Training employees Total activity cost 15,800 115,800 132,300 29,300 27,500 $530,000 b. Prepare a cost of quality report. Assume that sales are $2,120,000. If required, round percentages to onie decimal place Quality Cost Classification Three Rivers Inc. Cost of Quality Report Percent of Total Percent of Quality Cost Quality Cost Total Sales % % Prevention Appraisal % 96 96 9% Internal failure % External failure 96 % Total c. Prepare a value-addedon-value-added analysis. Three Rivers Inc. Value-Added/Non-Value Added Activity Analysis Category Amount Percent Value-added % 96 Non-value-added 9 Previous Total

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