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Gallatin Company makes chairs for outside living spaces. The company has been working on improving quality over the last year and wants to evaluate
Gallatin Company makes chairs for outside living spaces. The company has been working on improving quality over the last year and wants to evaluate how well it has done on costs-of-quality (COQ) measures. Here are the results: (Click the icon to view the results.) Read the requirements. Cost Supplier evaluation Scrap Warranty repair costs Design engineering Inspection Rework Cost of quality category Requirement 2. Prepare a COQ Report by calculating the costs of quality for each category and the ratio of each COQ category to revenues and total quality costs. Begin with 2019 costs and ratios, then complete the report with 2020 costs and ratios. (Round percentages to one decimal place, X.X%.) 2019 2020 % of % of % of % of Total Costs Total COQ Revenue Total Costs Total COQ Revenue Prevention costs % % % % Appraisal costs Internal failure costs External failure costs Total Costs of Quality % % % % % % % % % % % % % % % % Requirement 3. Based on the results of requirement 2, would you conclude that Gallatin's quality program has been successful? Prepare a short report to present your case. Total Costs of Quality as a percentage of sales. Quality costs have shifted to the area of starts. The where problems are solved before production in these costs has in terms of reducing Internal and External failure costs. In summary, Gallatin's quality program appears to have been Requirements 1. Identify costs-of-quality category (prevention, appraisal, internal failure, and external failure) for each of these costs. 2. Prepare a COQ Report by calculating the costs of quality for each category and the ratio of each COQ category to revenues and total quality costs. 3. Based on the results of requirement 2, would you conclude that Gallatin's quality program has been successful? Prepare a short report to present your case. Print Done -
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