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 Quality Control Activities Billing error correction d or non-value-added. Value-Added/ Non-Value-Added Classification Activity Quality Cost Cost Classification $24,400 Appraisal Cable signal testing 67,200 Reinstalling service (installed incorrectly the first time) 52,400 Repairing satellite equipment 29,400 Repairing underground cable connections to the 15,800 customer Replacing old technology cable with higher 84,700 quality cable Replacing old technology signal switches with 96,800 higher quality switches Responding to customer home repair requests 29,200 Training employees 20,100 Total activity cost $420,000