b. Prepare a cost of quality report. Assume that sales are $2,000,000. If required, round percentages to one decimal place.Quality CostClassificationPreventionAppraisalInternal failureExternal failureTotalThree Rivers Inc.Cost of Quality ReportQuality Cost$CategoryValue-addedThree Rivers Inc.Value-Added/Non-Value-AddedTotalActivity AnalysisNon-value-addedPercent of TotalQuality Costc. Prepare a value-added/non-value-added analysis.Amount Percent$%%%%%%%%Percent ofTotal Sales%%%%%d. What percentage of total costs of quality are considered to be value-added? Cost of Quality andValue-Added/Non-Value-AddedReports for a Service CompanyThree Rivers Inc. provides cable TV and Internet service to the local community. The activities and activity costs of Three Rivers are identified as follows:a. Identify the cost of quality classification for each activity and whether the activity is value-added or non-value-added.Value-Added/Non-Value-AddedClassificationQuality Control ActivitiesBilling error correctionCable signal testingReinstalling service (installed incorrectly the firsttime)Repairing satellite equipmentRepairing underground cable connections to thecustomerReplacing old technology cable with higher qualitycableReplacing old technology signal switches with higherquality switchesResponding to customer home repair requestsTraining employeesTotal activity costActivityCost$23,20060,00049,90024,00015,10084,00096,00027,80020,000$400,000Quality CostClassification

The cost of quality is a mechanism for determining when and where an organization's resources have…

b. Prepare a cost of quality report. Assume that sales are $2,000,000. If required, round percentages Quality Cost Classification Prevention Appraisal Internal failure External failure Total Three Rivers Inc. Cost of Quality Report Quality Cost 00000 Percent of Total Percent of Quality Cost Total Sales % % % % % 00000 % % % % %

b. Prepare a cost of quality report. Assume that sales are $2,000,000. If required, round percentages Quality Cost Classification Prevention Appraisal Internal failure External failure Total Three Rivers Inc. Cost of Quality Report Quality Cost 00000 Percent of Total Percent of Quality Cost Total Sales % % % % % 00000 % % % % %

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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