eBook Pareto Chart and Cost of Quality Report for a Manufacturing Company The president of Mission Inc. has been concerned about the growth in costs over the last several years. The president asked the controller to perform an activity analysis to gain a better insight into these costs. The result of the activity analysis is summarized as follows: Activities Correcting invoice errors Activity Cost $20,000 Disposing of incoming materials with poor quality 16,000 Disposing of scrap 60,000 Expediting late production 52,000 Final inspection Inspecting incoming materials Inspecting work in process 28,000 8,000 44,000 Preventive machine maintenance 28,000 Producing product 124,000 Responding to customer quality complaints Total 20,000 $400,000 The production process is complicated by quality problems, requiring the production manager to expedite production and dispose of scrap. Required: 1. On paper or in a spreadsheet program, prepare a Pareto chart for each of the activities listed above. Answer the following: What type of chart is a Pareto chart? Check My Work 3 more Check My Work uses remaining. Previous