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/ Non-Value-Added Classification Quality Control Activities Activity Cost Quality Cost Classification Billing error correction $45,400 Cable signal testing 88,200 Reinstalling service (installed incorrectly the first 97,500 time) Repairing satellite equipment 25,200 Repairing underground cable connections to the 29,500 customer Replacing old technology cable with higher quality 121,700 cable Replacing old technology signal switches with higher 139,100 quality switches Responding to customer home repair requests Training employees Total activity cost 54,400 29,000 $630,000