Costs of quality analysis. Adirondack Company makes chairs for outside living spaces. The com- pany has been working on improving quality over the last year and wants to evaluate how well it has done on costs-of-quality (Co0) measures. Here are the results: Annual COQ Report, Adirondack Company 2016 2017 Supplier evaluation Scrap Warranty repair costs Design engineering Inspection $ 5,000 $ 7,500 $ 9,980 $ 4,475 $ 3,500 $ 8,980 $ 39,435 $500,000 $ 5,500 $ 5,900 $ 7,960 $ 6,775 $ 4,600 $ 5,800 $ 36,535 $575,000 Rework Total CoQ Total Revenue
Costs of quality analysis. Adirondack Company makes chairs for outside living spaces. The com- pany has been working on improving quality over the last year and wants to evaluate how well it has done on costs-of-quality (Co0) measures. Here are the results: Annual COQ Report, Adirondack Company 2016 2017 Supplier evaluation Scrap Warranty repair costs Design engineering Inspection $ 5,000 $ 7,500 $ 9,980 $ 4,475 $ 3,500 $ 8,980 $ 39,435 $500,000 $ 5,500 $ 5,900 $ 7,960 $ 6,775 $ 4,600 $ 5,800 $ 36,535 $575,000 Rework Total CoQ Total Revenue
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Identify the costs-of-quality category (prevention, appraisal, internal failure, and external failure) for each of these costs.
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