Walton Company has measured its quality costs for the past two years. After the company gathers its quality cost data, it summarizes those costs using the four categories shown below: Last Year This Year Prevention costs $ 349,900 $ 617,500 Appraisal costs $ 449,500 $ 523,200 Internal failure costs $ 805,800 $ 520,000 External failure costs $ 1,111,000 $ 673,200 1. Calculate the change in total cost of quality over the two-year period. 2. Is performance trending in a favorable or unfavorable direction?
Walton Company has measured its quality costs for the past two years. After the company gathers its quality cost data, it summarizes those costs using the four categories shown below: Last Year This Year Prevention costs $ 349,900 $ 617,500 Appraisal costs $ 449,500 $ 523,200 Internal failure costs $ 805,800 $ 520,000 External failure costs $ 1,111,000 $ 673,200 1. Calculate the change in total cost of quality over the two-year period. 2. Is performance trending in a favorable or unfavorable direction?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Walton Company has measured its quality costs for the past two years. After the company gathers its quality cost data, it summarizes those costs using the four categories shown below:
| Last Year | This Year | |
|---|---|---|
| Prevention costs | $ 349,900 | $ 617,500 |
| Appraisal costs | $ 449,500 | $ 523,200 |
| Internal failure costs | $ 805,800 | $ 520,000 |
| External failure costs | $ 1,111,000 | $ 673,200 |
1. Calculate the change in total cost of quality over the two-year period.
2. Is performance trending in a favorable or unfavorable direction?
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