Annual COQ Report, Adirondack Company 2016 2017 Supplier evaluation Scrap Warranty repair costs Design engineering Inspection $ 5,000 $ 1,500 $ ,980 $ 4,475 $ 3,500 $ 8,980 $ 39,435 $ 5,500 $ 5,900 $ 7,960 $ 6,775 Rework Total COQ Total Revenue $ 4,600 $ 5,800 $ 36,535 $575,000 $500,000 1. Identify the costs-of-quality category (prevention, appraisal, internal failure, and external failure) for each of these costs. 2. Prepare a COQ report by calculating the costs of quality for each category and the ratio of each cOQ category to revenues and total quality costs. 3. Based on the results of requirement 2, would you conclude that Adirondack's quality program has been successful? Prepare a short report to present your case. Required

Annual COQ Report, Adirondack Company 2016 2017 Supplier evaluation Scrap Warranty repair costs Design engineering Inspection $ 5,000 $ 1,500 $ ,980 $ 4,475 $ 3,500 $ 8,980 $ 39,435 $ 5,500 $ 5,900 $ 7,960 $ 6,775 Rework Total COQ Total Revenue $ 4,600 $ 5,800 $ 36,535 $575,000 $500,000 1. Identify the costs-of-quality category (prevention, appraisal, internal failure, and external failure) for each of these costs. 2. Prepare a COQ report by calculating the costs of quality for each category and the ratio of each cOQ category to revenues and total quality costs. 3. Based on the results of requirement 2, would you conclude that Adirondack's quality program has been successful? Prepare a short report to present your case. Required

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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