The accounting system for Dolment Co. reflected the following quality costs for Year 1 and Year 2: Year 1 Year 2 Customer refunds for poor product quality $33,300 $29,000 Fitting machines for mistake-proof operations 8,460 11,800 Supply chain management activities 8,100 10,000 Waste disposal 39,600 36,000 Quality training 23,400 30,000 Litigation claims for product defects 72,900 64,000 b. Calculate the percentage change in each cost and for each category. (See attached)
The accounting system for Dolment Co. reflected the following quality costs for Year 1 and Year 2: Year 1 Year 2 Customer refunds for poor product quality $33,300 $29,000 Fitting machines for mistake-proof operations 8,460 11,800 Supply chain management activities 8,100 10,000 Waste disposal 39,600 36,000 Quality training 23,400 30,000 Litigation claims for product defects 72,900 64,000 b. Calculate the percentage change in each cost and for each category. (See attached)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The accounting system for Dolment Co. reflected the following quality costs for Year 1 and Year 2:
| Year 1 | Year 2 | |
| Customer refunds for poor product quality | $33,300 | $29,000 |
| Fitting machines for mistake-proof operations | 8,460 | 11,800 |
| Supply chain management activities | 8,100 | 10,000 |
| Waste disposal | 39,600 | 36,000 |
| Quality training | 23,400 | 30,000 |
| Litigation claims for product defects | 72,900 | 64,000 |
b. Calculate the percentage change in each cost and for each category. (See attached)
Transcribed Image Text:Year 1
Year 2 Percentage Change
Customer refunds for poor product quality
Noncompliance cost
$33,300 $29,000
0 % x
Fitting machines for mistake-proof operations Compliance cost
8,460 11,800
0 % x
Supply chain management activities
Compliance cost
8,100 10,000
0% x
Waste disposal
Noncompliance cost +
v 39,600 36,000
0 % x
Quality training
Compliance cost
23,400 30,000
0 % x
Litigation claims for product defects
Noncompliance cost +
72,900 64,000
0 % x
Compliance cost category
0% x
Noncompliance cost category
0 % x
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