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HELP WITH ACCOUNT 2 PROBLEM Dell & Co. makes electronic components. Chris Dell, the president, recently instructed Vice President Jim Bruegger to develops total quality
HELP WITH ACCOUNT 2 PROBLEM
Dell & Co. makes electronic components. Chris Dell, the president, recently instructed Vice President Jim Bruegger to develops total quality control program. * If we don't at least match the quality improvements our competitors are making." he told Bruegger, "we'll soon be out of business." Bruegger began by listing various "costs of quality" that Dell incurs. The first six items that came to mind were: (Click the icon to view the information.) Classify each item as a prevention cost, an appraisal cost, an internal failure cost, or an external failure cost. Then, determine the total cost of quality by category. Begin by classifying each item as a prevention cost, an appraisal cost, an internal failure cost, or an external failure cost by entering each amount in the appropriate column, then, determine the total cost of quality by category. (If a box is not used in the table leave the box empty, do not enter a zero.) a. Costs incurred by Dell customer representatives traveling to customer sites to repair defective products, exist15, 500. b. Lost profits from lost sales due to reputation for less-than-perfect products, exist35,000. c. Costs of inspecting components in one of Dell's production processes, exist15,000. d. Salaries of engineers who are redesigning components to withstand electrical overloads. exist100,000. e. Costs of reworking defective components after discovery by company inspectors, exist30,000. f. Costs of electronic components returned by customers, exist60,000Step by Step Solution
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