Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

no explanation needed 56. Adolphson Corporation has provided the following summary of its quality cost report for the last two years: Summary of Quality Cost

no explanation needed image text in transcribed
56. Adolphson Corporation has provided the following summary of its quality cost report for the last two years: Summary of Quality Cost Report (in thousands) 315 Prevention costs........... Appraisal costs ................... Internal failure costs...... External failure costs................ Total quality costs .................... This Year Last Year $ 300 $ 200 210 114 190 621 1.200 $1,350 $1,800 % Change +50 +50 -40 -48 -25 On the basis of this report, which one of the following statements is most likely correct? A) An increase in prevention and appraisal costs resulted in fewer defects, and therefore, resulted in a decrease in internal and external failure costs. B) A decrease in internal and external failure costs resulted in less need for prevention and appraisal costs. C) Quality costs such as scrap and rework decreased by 48%. D) Quality costs such as returns and repairs under warranty decreased by 40%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting

Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren

23rd Edition

978-0324662962

More Books

Students also viewed these Accounting questions