Prevention costsAppraisal costsInternal failure costs:External failure costsLast Year$ 389, 100$ 467, 300$ 837,400$1,100,000This Year$ 669,500$ 545,000$ 465,000$ 612,000Required: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 3Required 4A Required 48Calculate the change in total cost of quality over the two-year period.Prevention and appraisal activitiesInternal and external failure costsThe total cost of qualityIncreasedDecreased502,300 Decreased< Prev4 of 5⠀⠀Next

The total cost of quality test refers to the process of measuring and analyzing the costs of quality…

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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

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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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
< Prev
4 of 5
⠀⠀
Next

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