Acme Materials Company manufactures and sells synthetic coatings that can withstand high temperatures. Its primary customers are aviation manufacturers and maintenance companies. The following table contains financial information pertaining to cost of quality (COQ) in 2022 and 2023 (in thousands of dollars): Sales Materials inspection In-process (production) inspection Finished product inspection Preventive equipment maintenance Scrap (net) Warranty repairs Product design engineering Vendor certification Direct costs of returned goods. Training of factory workers Product testing-equipment maintenance Product testing labor Field repairs Rework before shipment Product-liability settlement Emergency repair and maintenance 2022 $ 15,800 280 158 230 18 480 680 148 22 255 38 58 190 68 220 340 180 2023 $ 19,800 58 123 68 58 280 430 250 58 78 138 58 88 38 198 58 73 Are financial or nonfinancial quality measures likely of more use to (a) managers or (b) operating personnel? Why?

Acme Materials Company manufactures and sells synthetic coatings that can withstand high temperatures. Its primary customers are aviation manufacturers and maintenance companies. The following table contains financial information pertaining to cost of quality (COQ) in 2022 and 2023 (in thousands of dollars): Sales Materials inspection In-process (production) inspection Finished product inspection Preventive equipment maintenance Scrap (net) Warranty repairs Product design engineering Vendor certification Direct costs of returned goods. Training of factory workers Product testing-equipment maintenance Product testing labor Field repairs Rework before shipment Product-liability settlement Emergency repair and maintenance 2022 $ 15,800 280 158 230 18 480 680 148 22 255 38 58 190 68 220 340 180 2023 $ 19,800 58 123 68 58 280 430 250 58 78 138 58 88 38 198 58 73 Are financial or nonfinancial quality measures likely of more use to (a) managers or (b) operating personnel? Why?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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