Accounting Information Systems
11th Edition
ISBN: 9780357156032
Author: Ulric J. Gelinas; Richard B. Dull; Patrick Wheeler
Publisher: Cengage Limited
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Textbook Question
Chapter 12, Problem 4DQ
Without redrawing the figures, discuss how Figure 12.3 (pg. 464), Figure 12.4 (pg. 465), Figure 12.6 (pg. 466), Figure 12.7 (pg. 468), and Figure 12.9 (pg. 470) would change as a result of purchasing a technical product that could not be inspected in the receiving department but had to undergo quality control testing before being accepted.
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Rector Corporation is examining its quality control program. Which of the following statements is/ are correct?I. Rework costs should be regarded as a cost of quality when the rework is caused by internal failure. II. Prevention costsare costs that are incurred to prevent the sale and production of defective units. III. Internal failure costs are costs of failureof machinery on the production line.1. I, II, and III are correct.2. II only is correct.3. I and III only are correct.4. I only is correct.
Classify the following quality costs as prevention costs, appraisal costs, internal failure costs, orexternal failure costs:1. Inspection of reworked units2. Inspecting and testing a newly developed product (not yet being sold)3. Retesting a reworked product4. Repairing a computer still under warranty5. Discount allowed to customers because products failed to meet customer specifications6. Goods returned because they failed to meet specifications7. The cost of evaluating and certifying suppliers8. Stopping work to correct process malfunction (discovered using statistical process controlprocedures)9. Testing products in the field10. Discarding products that cannot be reworked11. Lost sales because of recalled products12. Inspection of incoming materials13. Redesigning a product to eliminate the need to use an outside component with a highdefect rate14. Purchase order changes
15. Replacing a defective product16. Inspecting and testing prototypes17. Repairing products in the field18.…
A company engages in a number of activities as part of its quality control system:
a. Which type of costs are incurred in an effort to keep poor quality of conformance from occurring?
O External failure costs
O Prevention costs and appraisal costs
O Internal failure costs
b. Which type of costs are incurred because poor quality of conformance has occurred?
O Appraisal costs
O Internal and external fallure costs
O Prevention costs
Chapter 12 Solutions
Accounting Information Systems
Ch. 12 - Prob. 1RQCh. 12 - What primary functions does the purchasing process...Ch. 12 - Prob. 3RQCh. 12 - What are the fundamental responsibilities of each...Ch. 12 - Describe supply chain management (SCM).Ch. 12 - Prob. 6RQCh. 12 - Prob. 7RQCh. 12 - Prob. 8RQCh. 12 - Prob. 9RQCh. 12 - Prob. 10RQ
Ch. 12 - Prob. 11RQCh. 12 - What types of frauds are typically found in the...Ch. 12 - What are the typical effectiveness goals of the...Ch. 12 - What characterizes a valid PO input? What...Ch. 12 - Prob. 15RQCh. 12 - Describe the impact that entity-level controls...Ch. 12 - Refer to the operations process (effectiveness)...Ch. 12 - Explain why ambiguities and conflicts exist among...Ch. 12 - Prob. 3DQCh. 12 - Without redrawing the figures, discuss how Figure...Ch. 12 - Prob. 5DQCh. 12 - Prob. 6DQCh. 12 - Prob. 7DQCh. 12 - Prob. 8DQCh. 12 - Prob. 9DQCh. 12 - Prob. 1SPCh. 12 - Prob. 2SPCh. 12 - Prob. 3SPCh. 12 - Prob. 4SPCh. 12 - Prob. 4PCh. 12 - Prob. 5PCh. 12 - Prob. 6P
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- Which 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_forwardWhich of the following would be a hidden quality cost? a. Inspecting and testing prototypes b. Repairing a computer still under warranty c. Stopping work to correct process malfunction (discovered using statistical process control procedures) d. Lost market share due to poor product performancearrow_forward(Appendix 11A) Which of the following would be classified as an external failure cost on a quality cost report? Multiple Choice Repairs and replacements beyond the warranty period. Quality engineering. Systems development. Quality training.arrow_forward
- 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. 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 type of quality cost is the cost incurred as a result of rectifying substandard products? A. Appraisal costs B. Internal failure costs C. External failure costs D. Prevention costsarrow_forwardAfter a product is inspected, some units may be classified as spoiled and others as defective. What distinguishes a product as being spoiled or defective?arrow_forward
- Identify 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_forwardthe categories chart show in the image is for question 1. answer full question please.arrow_forwardAnswer classify with explanationarrow_forward
- PLEASE ANSWER CORRECTLYarrow_forwardOn 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 productarrow_forwardplease answer correct for both with workingarrow_forward
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