would be the Total External Failure Cost appearing on the quality cost report.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Heracross Inc quality cost report is based on the following data:
Test and inspection of in-process goods
P 38,000
Quality training
56,000
Product recalls
10,000
Net cost of scrap
98,000
Cost of handling complaints
5,000
Final product testing and inspection
89,000
Returns arising from quality problems
25,000
Statistical process control activities
83,000
Liability arising from defective products
21,000
Downtime caused by quality problems
78,000
Quality data gathering, analysis, and reporting
90,000
Technical support provided to suppliers
50,000
Disposal of defective products
76,000
Lost sales due to poor quality
11,000
P.
would be the Total External Failure Cost appearing on the quality
cost report.
Transcribed Image Text:Heracross Inc quality cost report is based on the following data: Test and inspection of in-process goods P 38,000 Quality training 56,000 Product recalls 10,000 Net cost of scrap 98,000 Cost of handling complaints 5,000 Final product testing and inspection 89,000 Returns arising from quality problems 25,000 Statistical process control activities 83,000 Liability arising from defective products 21,000 Downtime caused by quality problems 78,000 Quality data gathering, analysis, and reporting 90,000 Technical support provided to suppliers 50,000 Disposal of defective products 76,000 Lost sales due to poor quality 11,000 P. would be the Total External Failure Cost appearing on the quality cost report.
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