Question
P Company had the same dollar amount of sales both this year and last year. LAST YEAR, P Company's Prevention Costs were $80,000 and Appraisal
P Company had the same dollar amount of sales both this year and last year. LAST YEAR, P Company's Prevention Costs were $80,000 and Appraisal Costs were $30,000 and Internal Failure Costs were $50,000 and External Failure Costs were $200,000 The CURRENT YEAR quality costs are shown below. In your answer box provide (a) Total Dollar amount of Prevention Costs for the CURRENT YEAR, (b) Total Dollar amount of Appraisal Costs for the CURRENT YEAR, (c) Total Dollar amount of Internal Failure Costs for the CURRENT YEAR, (d) Total Dollar amount of External Failure Costs for the CURRENT YEAR and (e) one sentence telling me if Management's Quality Cost strategy IMPROVED or WORSENED the company's profitability overall in the CURRENT YEAR compared to LAST YEAR and WHY.
Training of employees $50,000
Customer service $13,000
Inspection of completed products $28,000
Design review costs $12,000
Warranty claims $8,000
Sample testing of materials $26,000
Returned goods by customers $98,000
Preventive maintenance $45,000
Scrap and rework $44,000
Product recalls $32,000
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