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. Quality Control Activities Billing error correction Cable signal testing Activity Quality Cost Cost Classification $27,100 External failure 57,400 Appraisal 58,200 External failure Value-Added/ Non-Value-Added Classification Non-value-added Value-added Non-value-added Non-value-added Reinstalling service (installed incorrectly the first time) Repairing satellite equipment 12,300 Internal failure Repairing underground cable connections to the customer 17,600 External failure Non-value-added Replacing old technology cable with higher quality cable 86,100 Prevention Value-added Replacing old technology signal switches with higher quality switches Responding to customer home repair requests 98,400 Prevention Value-added Training employees Total activity cost 32,400 External failure Non-value-added 20,500 Prevention Value-added $410,000