Eaglin Company's quality cost report is to be based on the following data: Disposal of defective products Liability arising from defective products Test and inspection of in-process goods Systems development Net cost of spoilage Supervision of testing and inspection activities Lost sales due to poor quality Maintenance of test equipment Quality data gathering, analysis, and reporting What would be the total appraisal cost appearing on the quality cost report? $ 74,000 $ 66,000 $ 82,000 $ 11,000 $ 75,000 $ 93,000 $ 44,000 $ 19,000 $ 51,000

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter14: Quality And Environmental Cost Management
Section: Chapter Questions
Problem 5CE: Verde Company reported operating costs of 50,000,000 as of December 31, 20x5, with the following...
Question

Subject: accounting 

What would be the total appraisal cost appearing on the quality cost report?
Multiple Choice
$175,000
$167,000
$194,000
$112.000
Transcribed Image Text:What would be the total appraisal cost appearing on the quality cost report? Multiple Choice $175,000 $167,000 $194,000 $112.000
Eaglin Company's quality cost report is to be based on the following data:
Disposal of defective products
Liability arising from defective products
Test and inspection of in-process goods
Systems development
Net cost of spoilage
Supervision of testing and inspection activities
Lost sales due to poor quality
Maintenance of test equipment
Quality data gathering, analysis, and reporting
What would be the total appraisal cost appearing on the quality cost report?
Multiple Choice
$175,000
$167,000
$ 74,000
$ 66,000
$ 82,000
$ 11,000
$ 75,000
$ 93,000
$ 44,000
$ 19,000
$ 51,000
Transcribed Image Text:Eaglin Company's quality cost report is to be based on the following data: Disposal of defective products Liability arising from defective products Test and inspection of in-process goods Systems development Net cost of spoilage Supervision of testing and inspection activities Lost sales due to poor quality Maintenance of test equipment Quality data gathering, analysis, and reporting What would be the total appraisal cost appearing on the quality cost report? Multiple Choice $175,000 $167,000 $ 74,000 $ 66,000 $ 82,000 $ 11,000 $ 75,000 $ 93,000 $ 44,000 $ 19,000 $ 51,000
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