Question
Walton Company has measured its quality costs for the past two years. After the company gathers its quality cost data, it summarizes those costs using
Walton Company has measured its quality costs for the past two years. After the company gathers its quality cost data, it summarizes those costs using the four categories shown below:
Last Year | This Year | ||||||
Prevention costs | $ | 349,900 | $ | 617,500 | |||
Appraisal costs | $ | 449,500 | $ | 523,200 | |||
Internal failure costs | $ | 805,800 | $ | 520,000 | |||
External failure costs | $ | 1,111,000 | $ | 673,200 | |||
1. Calculate the total cost of quality last year and this year.
2. For last year, calculate the cost in each of the four categories as a percent of the total cost of quality. (Round your percentage answers to 1 decimal place.)
3. For this year, calculate the cost in each of the four categories as a percent of the total cost of quality. (Round your percentage answers to 1 decimal place.)
4a. Calculate the change in total cost of quality over the two-year period.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started