Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The first two pictures are for the first problem and the second two are for the second problem. che A number of activities that are

The first two pictures are for the first problem and the second two are for the second problem.
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
che A number of activities that are part of a company's quality control system are listed below: Required: 1. Classify the costs associated with each of these activities into one of the following categories: prevention cost, appraisal cost. internal failure cost, or external failure cost. Prevention Appraisal Cost Cost Internal Failure External Failure Cost Cost Activities a: Product testing b. Product recalls c. Rework labor and overhead d Quality circles Downtime caused by defects Cost of field servicing Inspection of goods h Quality engineering Warranty repairs Statistical process control * Net cost of scrap Depreciation of test equipment m. Returns and allowances arising from poor quality n Disposal of production defects Technical support to suppliers p. Systems development 9 Warranty replacements Field testing at customer site 5. Quality training 2-a. Which type of costs are incurred in an effort to keep poor quality of conformance from occurring? External failure costs O Internal failure costs O Prevention costs and appraisal costs 2-b. Which type of costs are incurred because poor quality of conformance has occurred? O Internal and external failure costs O Prevention costs O Appraisal costs CI 2 Walton Company has measured its quality costs for the past two years. After the company gathers its quality cost dato, it summarizes those costs using the four categories shown below: Prevention costs Appraisal costs Internal failure costs External failure costs Last Year This Year $ 357,000 $ 650,000 $ 445,000 $545,000 $ 790,000-$ 500.000 $1,100,eee $ 680,000 Book Required: 1. Calculate the total cost of quality last year and this year Print Last Year This Year Total cost of quality o rences 2. For last year, calculate the cost in each of the four categories as a percent of the total cost of quality (Round your answers to 1 decimal place.) Last Year % Prevention costs Appraisal costs Internal failure costs External failure costs Total percent X aw 11 3. For this year, calculate the cost in each of the four categories as a percent of the total cost of quality. (Round your answers to 1 decimal place.) This Year % Prevention costs Appraisal costs Internal failure costs External failure costs Total percent % % % 4-0. Calculate the change in total cost of quality over the two-year period. Prevention and appraisal activities Internal and external failure costs The total cost of quality

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

Financial Accounting The Basics

Authors: Ilias Basioudis

1st Edition

1138605514, 9781138605510

More Books

Students also viewed these Accounting questions