Fabrick Company's quality cost report is to be based on the following data: Lost sales due to poor quality Quality data gathering, analysis, and reporting Net cost of spoilage Re-entering data because of keying errors Test and inspection of in-process goods Final product testing and inspection Statistical process control activities Returns arising from quality problems Downtime caused by quality problems What would be the total external failure cost appearing on the quality cost report? Multiple Choice $380,000 $54,200 $205,700 $83,900 $ 20,400 $ 71,000 $ 65,200 $ 22,800 $ 11,800 $ 49,700 $ 41,800 $ 33,800 $ 63,500
Fabrick Company's quality cost report is to be based on the following data: Lost sales due to poor quality Quality data gathering, analysis, and reporting Net cost of spoilage Re-entering data because of keying errors Test and inspection of in-process goods Final product testing and inspection Statistical process control activities Returns arising from quality problems Downtime caused by quality problems What would be the total external failure cost appearing on the quality cost report? Multiple Choice $380,000 $54,200 $205,700 $83,900 $ 20,400 $ 71,000 $ 65,200 $ 22,800 $ 11,800 $ 49,700 $ 41,800 $ 33,800 $ 63,500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Fabrick Company's quality cost report is to be based on the following data:
Lost sales due to poor quality
Quality data gathering, analysis, and reporting
Net cost of spoilage
Re-entering data because of keying errors
Test and inspection of in-process goods
Final product testing and inspection
Statistical process control activities
Returns arising from quality problems
Downtime caused by quality problems
What would be the total external failure cost appearing on the quality cost report?
Multiple Choice
O $380,000
$54,200
$205,700
$83,900
$ 20,400
$ 71,000
$ 65,200
$ 22,800
$ 11,800
$ 49,700
$ 41,800
$ 33,800
$ 63,500
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