cost in each of the four categories a ost in each of the four categories a otal cost of quality over the two-yea a favorable or unfavorable directie
cost in each of the four categories a ost in each of the four categories a otal cost of quality over the two-yea a favorable or unfavorable directie
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![Prevention costs
Appraisal costs
Internal failure costs:
External failure costs
Last Year
$ 389, 100
$ 467, 300
$ 837,400
$1,100,000
This Year
$ 669,500
$ 545,000
$ 465,000
$ 612,000
Required:
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.
3. For this year, calculate the cost in each of the four categories as a percent of the total cost of quality.
4-a. Calculate the change in total cost of quality over the two-year period.
4-b. Is performance trending in a favorable or unfavorable direction?
Complete this question by entering your answers in the tabs below.
Required 1 Required 2 Required 3
Required 4A Required 48
Calculate the change in total cost of quality over the two-year period.
Prevention and appraisal activities
Internal and external failure costs
The total cost of quality
Increased
Decreased
502,300 Decreased
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Transcribed Image Text:Prevention costs
Appraisal costs
Internal failure costs:
External failure costs
Last Year
$ 389, 100
$ 467, 300
$ 837,400
$1,100,000
This Year
$ 669,500
$ 545,000
$ 465,000
$ 612,000
Required:
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.
3. For this year, calculate the cost in each of the four categories as a percent of the total cost of quality.
4-a. Calculate the change in total cost of quality over the two-year period.
4-b. Is performance trending in a favorable or unfavorable direction?
Complete this question by entering your answers in the tabs below.
Required 1 Required 2 Required 3
Required 4A Required 48
Calculate the change in total cost of quality over the two-year period.
Prevention and appraisal activities
Internal and external failure costs
The total cost of quality
Increased
Decreased
502,300 Decreased
< Prev
4 of 5
⠀⠀
Next
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