Question
Question # 1: 2021 2022 Depreciation of test equipment $94,000 $95,000 Audits of the effectiveness of the quality system $54,000 $51,000 Product recalls $20,000 $30,000
Question # 1:
2021 2022
Sales grew from $950,000 in 2021 to $1,000,000 in 2022.
Required: Prepare a quality cost report in proper order and in good form with separate sections for each of the four types of quality costs with appropriate subtotals and an overall total for both years as well as a percentage of sales column. Carry percentage computations to one decimal place. (15 marks). |
Answer to Question #1
Quality Cost Report
2022 | % | 2021 | % | |
Sales | 1,000,000 | 950,000 | ||
Prevention Costs: | ||||
Appraisal Costs: | ||||
Internal Failure costs: | ||||
External failure Costs: | ||||
Total |
Question # 2:
The IT Corporation produces and markets two types of electronic calculators: Model 11 and Model 12. The following data were gathered on activities last month:
Required:
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Answer to question # 2:
Segmented Income Statement in Contribution Format
Model -11 | Model -12 | ||
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Question # 3:
- Identify three types of responsibility centres and describe how performance is measured for each one.
- What is meant by the terms margin and turnover?
Sales grew from $950,000 in 2021 to $1,000,000 in 2022.
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