Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The CEO of Mom's Snackfoods is concerned about the amount of resources currently spent on customer warranty claims. Each box of snacks is printed with

The CEO of Mom's Snackfoods is concerned about the amount of resources currently spent on customer warranty claims. Each box of snacks is printed with the guarantee: "Satisfaction guaranteed or your money back." Since the cla high, she would like to evaluate what costs are being incurred to ensure the quality of the product. The following information was collected from various departments within the company: (Click the icon to view the information collected.) Requirements Total appraisal costs Internal Failure Costs: % Cost of defective products Cost of disposing of rejected products Inspecting products at halfway point Inspection of raw materials Personnel training Preventative maintenance Production loss due to machine breakdowns % Recall of Batch #59374 Warranty claims % 100 % Requirement 2. Do any additional subjective costs appear to be missing from the report? Because the company has the company may a reputation for customers will be to buy from the company again. They may also tell their friends and family If so, they are probably buy from the company. This report does not include an estimate of the profits from profits arising from a reputation for sales. Requirement 3. What can be learned from the report? The Cost of Quality report shows that very little is being spent on which is probably why the costs are so high. It appears that the company is inspecting the product The CEO of Mom's Snackfoods is concerned about the amount of resources currently spent on customer warranty claims. Each box of snacks is printed with the guarantee: "Satisfaction guaranteed or your money back." Since the claims are so high, she would like to evaluate what costs are being incurred to ensure the quality of the product. The following information was collected from various departments within the company: (Click the icon to view the information collected.) Requirements Total appraisal costs Internal Failure Costs: % Total internal failure costs External Failure Costs: Total external failure costs Total Costs of Quality Requirement 2. Do any additional subjective costs appear to be missing from the report? % % 100 % Because the company has customers will be the company may a reputation for to buy from the company again. They may also tell their friends and family If so, they are probably buy from the company. This report does not include an estimate of the profits from profits arising from a reputation for sales. Requirement 3. What can be learned from the report? The Cost of Quality report shows that very little is being spent on which is probably why the costs are so high. It appears that the company is inspecting the product The CEO of Mom's Snackfoods is concerned about the amount of resources currently spent on customer warranty claims. Each box of snacks is printed with the guarantee: "Satisfaction guaranteed or your money back." Since the claims are high, she would like to evaluate what costs are being incurred to ensure the quality of the product. The following information was collected from various departments within the company: (Click the icon to view the information collected.) Requirements Requirement 1. Prepare a Cost of Quality Report. In addition to listing the costs by category, determine the percentage of the total costs of quality incurred in each cost category. Let's complete the Cost of Quality Report by selecting the labels, costs, and total costs. In the next step we will calculate the percentage of the total costs of quality incurred in each cost category. (Round the percentage of total costs of qu to the nearest whole number.) Cost of Quality Report for Mom's Snackfoods Prevention Costs: Total prevention costs Appraisal Costs: Total appraisal costs Internal Failure Costs: Total Costs Percentage of total Costs of Quality costs of quality % % Checce from any list or enter any number in the input fields and then continue to the next question Question Help w The CEO of Mom's Snackfoods is concemed about the amount of resources currently spent on customer wamanty claims. Each box of snacks is printed with the guarantee: "Satisfaction guaranteed or your money back." Since the caine are high, she would like to evaluate what costs are being incurred to ensure the quality of the product. The following information was collected from various departments within the company (Click the icon to view the information collected) Baumerts Requirement 1. Prepare a Cost of Quality Report. In addition to isting the costs by category, determine the percentage of the total costs of quality incumed in each cost category Let's complete the Cost of Quality Report by selecting the labels, costs, and total costs in the next step we will calculate the percentage of the total costs o ity incumed in each cost category and the percentage of total cost of quality to the nearest whole number) Cost of Quality Report for Mom's Snackfoods Prevention Cust Total prevention cos Appraisal Costs Tita appraisal.co mal Falur C Total Costs Percentage of total of Quality Choose from any 1st or enter any number in the input tids and then continue so the next question MacBook Air The CEO of Mom's Snackfoods is concemed about the amount of resources currently spent on customer warranty claims. Each box of snacks in printed with the guarantee "Satelaction guaranteed or your money back." Since the claims a high, she would the to evaluate what costs are being incumed to ensure the quality of the product. The following information was collected from various departments within the company Question Help w (Click the icon to view the information collected) Requirements Total internal failure costs Extemal Failure Costs Total external failure costs Total Costs of Quality Requirement 2. Do any additional subjective costs appear to be missing from the report? Because the company has 100% the company may a reputation for so, they are probably profity customers will be to buy from the company again. They may also tell their friends and family buy from the company. This report does not include an estimate of the profits arising from a pubon te Requirement 3. What can be leamed from the report? The Cost of Quality report shows that very little is being spent on which is probably why the the production process. Perhaps that is the reason its costs are so high. It appears that the company is inspecting the product costs are so high The CEO should use this information to develop quality initiatives in the areas of Bat inaives should reduce future costs Choose from any list or enter any number in the input fields and then continue to the next question. MacBook Air i Data Table Warranty claims.. $ 420,000 Cost of defective products found at the inspection point. 112,000 Training factory personnel.. 44,000 Recall of Batch #59374 191,000 Inspecting products halfway through the production process 69.000 be missing fro Cost of disposing of rejected products. 12,000 Preventive maintenance on factory equipment. 11,500 so, they are probably They may als Production loss due to machine breakdowns 19,000 stimate of the Inspection of raw materials 8,500 ton rhaps that is the reason its costs. ds and then continue to the next question. Print Done gh it appears that the com costs are so high. The CEO should use this information to develop quality initiatives in theimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

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

Step: 3

blur-text-image

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

Construction Accounting And Financial Management

Authors: Steven J. Peterson

4th Edition

0135232872, 978-0135232873

More Books

Students also viewed these Accounting questions

Question

Wear as little as possible

Answered: 1 week ago

Question

Be relaxed at the hips

Answered: 1 week ago