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
icon
Related questions
Question
!
Required information
[The following information applies to the questions displayed below.]
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
5. Are financial or nonfinancial quality measures likely of more use to (a) managers or (b) operating personnel? Why?
Transcribed Image Text:! Required information [The following information applies to the questions displayed below.] 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 5. Are financial or nonfinancial quality measures likely of more use to (a) managers or (b) operating personnel? Why?
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Quality control
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education