MANAGERIAL ACCOUNTING CONNECT ACCESS
17th Edition
ISBN: 9781265750879
Author: Garrison
Publisher: MCG
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Question
Chapter 12, Problem 2E
2.
To determine
Introduction:
The prevention costs and the appraisal costs are costs incurred to avoid the poor quality of conformance. The internal failure costs and the external failure costs are incurred after the poor quality of conformance has occurred.
The costs incurred to keep the poor quality of conformance from occurring and the costs incurred because the poor quality of conformance has occurred.
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On a Cost of Quality report, which of the following cost items should be classified as an internal failure cost?
Question 18 options:
Net cost of scrap
Customer returns of defective products
Training for quality control employees
Patent cost for a new product
A-6
Answer classify with explanation
Chapter 12 Solutions
MANAGERIAL ACCOUNTING CONNECT ACCESS
Ch. 12 - Prob. 1QCh. 12 - Prob. 2QCh. 12 - Prob. 3QCh. 12 - Prob. 4QCh. 12 - Prob. 5QCh. 12 - Prob. 6QCh. 12 - Prob. 7QCh. 12 - Prob. 8QCh. 12 - Prob. 9QCh. 12 - Prob. 10Q
Ch. 12 - Prob. 1AECh. 12 - Prob. 2AECh. 12 - Prob. 1ECh. 12 - Prob. 2ECh. 12 - Prob. 3ECh. 12 - Prob. 4ECh. 12 - Prob. 5ECh. 12 - Prob. 6ECh. 12 - Prob. 7ECh. 12 - Prob. 8ECh. 12 - Prob. 9ECh. 12 - Prob. 10ECh. 12 - Prob. 11ECh. 12 - Prob. 12PCh. 12 - Prob. 13PCh. 12 - Prob. 14PCh. 12 - Prob. 15PCh. 12 - Prob. 16PCh. 12 - Prob. 17PCh. 12 - Prob. 18PCh. 12 - Prob. 19PCh. 12 - Prob. 20PCh. 12 - Prob. 21C
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- A number of activities that are part of a company's quality control system are listed below: Required: 1. Classify the costs associated with each of these activities into one of the following categories: prevention cost, appraisal cost, internal failure cost, or external failure cost. Prevention Appraisal Cost Internal Failure External Failure Cost Activities Cost Cost a. Product testing b Product recalls C. Rework labor and overhead d. Quality circles e Downtime caused by defects f. Cost of field servicing g. Inspection of goods Quality engineering h. i. Warranty repairs j Statistical process control k. Net cost of scrap Depreciation of test equipment m. Returns and allowances arising from poor quality n. Disposal of production defects O. Technical support to suppliers р. Systems development q. Warranty replacements r. Field testing at customer site Quality training S.arrow_forwardA number of activities that are part of a company's quality control system are listed below: Required: 1. Classify the costs associated with each of these activities into one of the following categories: prevention cost, appraisal cost, internal failure cost, or external failure cost. 2-a. Which type of costs are incurred to keep poor quality of conformance from occurring? 2-b. Which type of costs are incurred because poor quality of conformance has occurred? Complete this question by entering your answers in the tabs below. Required 1 Required 2a Required 2b Classify the costs associated with each of these activities into one of the following categories: prevention cost, appraisal cost, internal failure cost, or external failure cost. Activities a. Product testing b. Product recalls c. Rework labor and overhead d. Quality circles e. Downtime caused by defects f. Cost of field servicing g. Inspection of goods h. Quality engineering i. Warranty repairs j. Statistical process control…arrow_forwardWhich of the following quality costs is an internal failure cost? a. Inspection of reworked units b. Lost sales because of products failing to meet specifications c. Replacing a defective product d. Training production line workers in new quality proceduresarrow_forward
- Which of the following is a prevention cost? a. Inspection of materials. b. Continuing supplier verification. c. Prototype inspection. d. Recalls.arrow_forwardSpending on testing a product before shipment to customers is what type of quality cost? External failure cost Prevention cost Appraisal cost None of the abovearrow_forwardIdentify the type of quality cost as per total quality cost concept: A.Lost profit from lost sales from bad review B.Unplanned replacement C.Customer support D.Reprocessing wastearrow_forward
- Which would be classified as an external failure cost on a quality cost report?a. Reentering data because of keying errorsb. Customer returns due to quality problemsc. Test and inspection of in-process goodsd. Rework labor and overhead.arrow_forwardHow much of the total material handling cost should be allocated to the specialty windows?arrow_forwardAll of the following are internal failure cost except: Downtime caused by quality problems Debugging software errors Disposal of defective products Liability arising from defective products Rework labor and overheadarrow_forward
- please answer correct for both with workingarrow_forwardWhich of the following would be classified as an external failure cost on a quality cost report? Multiple Choice O Reentering data because of keying errors. Customer returns arising from quality problems. Test and inspection of in-process goods. Rework labor and overhead.arrow_forwardThe cost of quality are costs incurred to prevent, or costs arising as a result of, the production of low-quality product. These costs focus on conformance quality and are incurred in all business functions of the value chain. Discuss four categories of quality costs, give examples of individual cost of quality items in each category that companies in different economic sectors need to cover and explain how they might impact on companies’ performance.arrow_forward
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