Cost of Quality and Value-Added/Non-Vaule-Added Reports for a Service Company

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 $57,400 Cable signal testing 121,800 Reinstalling service (installed incorrectly the first 123,500 time) Repairing satellite equipment 26,100 Repairing underground cable connections to the 37,300 customer Replacing old technology cable with higher 182,700 quality cable Replacing old technology signal switches with 208,800 higher quality switches. Responding to customer home repair requests 68,900 Training employes 43,500 Total activity cost $870,000