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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
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 activities and activity costs of Three Rivers are identified as follows: a. Identify the cost of quality classification for each activity and whether the activity is value-added or non-value-added. Value-Added / Activity Quality Cost Non-Value-Added Quality Control Activities Cost Classification Classification Billing error correction $24,500 Cable signal testing 91,800 Reinstalling service (installed incorrectly the first 52,600 time) 35,700 Repairing satellite equipment Repairing underground cable connections to the customer Replacing old technology cable with higher quality cable Replacing old technology signal switches with 124,800 higher quality switches 29,400 Responding to customer home repair requests 26,100 Training employees $510,000 Total activity cost Next Previous Check My Work 5 more Check My Work uses remaining 5:59 PM b. Prepare a cost of quality report. Assume that sales are $2,550,000. If required, round percentages to one decimal place. Three Rivers Inc. Cost of Quality Report Quality Cost ClassificationQuality Cost Percent of Total Quality Cost Percent of Total Sales Prevention Appraisal Internal failure External failure c. Prepare a value-addedon-value-added analysis. Three Rivers Inc. Value-Added/ Non-Value-Added Activity Analysis Percent Amount Category Next Previous 5 more Check My Work uses remaining Check My Work Internal failure External failure Total c. Prepare a value-addedon-value-added analysis. Three Rivers Inc. Value-Added/Non-Value-Added Activity Analysis Category Amount Percent Value-added Total d. What percentage of total costs of quality are considered to be value-added? Next Previous 5 more Check My Work uses remaining. Check My Work 6:00 PM /18/2019 2 99+
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