EBK HORNGREN'S COST ACCOUNTING
16th Edition
ISBN: 9780134475998
Author: Rajan
Publisher: YUZU
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Textbook Question
Chapter 19, Problem 19.16MCQ
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 costs are costs that are incurred to prevent the sale and production of defective units.
- III. Internal failure costs are costs of failure of 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.
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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.
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…
the categories chart show in the image is for question 1.
answer full question please.
Chapter 19 Solutions
EBK HORNGREN'S COST ACCOUNTING
Ch. 19 - Describe two benefits of improving quality.Ch. 19 - Prob. 19.2QCh. 19 - Name two items classified as prevention costs.Ch. 19 - Give two examples of appraisal costs.Ch. 19 - Distinguish between internal failure costs and...Ch. 19 - Describe three methods that companies use to...Ch. 19 - Companies should focus on financial measures of...Ch. 19 - Give two examples of nonfinancial measures of...Ch. 19 - Give two examples of nonfinancial measures of...Ch. 19 - When evaluating alternative ways to improve...
Ch. 19 - Distinguish between customer-response time and...Ch. 19 - Prob. 19.12QCh. 19 - Give two reasons why delays occur.Ch. 19 - Companies should always make and sell all products...Ch. 19 - Prob. 19.15QCh. 19 - Rector Corporation is examining its quality...Ch. 19 - Six Sigma is a continuous quality improvement...Ch. 19 - Costs of quality. (CMA, adapted) Osborn, Inc.,...Ch. 19 - Costs of quality analysis. Adirondack Company...Ch. 19 - Costs-of-quality analysis. Safe Travel produces...Ch. 19 - Costs of quality, quality improvement. iCover...Ch. 19 - Prob. 19.22ECh. 19 - Prob. 19.23ECh. 19 - Waiting time. Its a Dogs World (IDW) makes toys...Ch. 19 - Waiting time, service industry. The registration...Ch. 19 - Waiting time, cost considerations, customer...Ch. 19 - Nonfinancial measures of quality and time. For the...Ch. 19 - Nonfinancial measures of quality, manufacturing...Ch. 19 - Statistical quality control. Harvest Cereals...Ch. 19 - Quality improvement, Pareto diagram,...Ch. 19 - Quality improvement, relevant costs, and relevant...Ch. 19 - Quality improvement, relevant costs, and relevant...Ch. 19 - Waiting times, manufacturing cycle times. The...Ch. 19 - Prob. 19.34PCh. 19 - Manufacturing cycle times, relevant revenues, and...Ch. 19 - Compensation linked with profitability, waiting...Ch. 19 - Ethics and quality. Weston Corporation...Ch. 19 - Prob. 19.38P
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Environmental costs are those costs incurred because poor environmental quality exists or may exist. As with quality costs, environmental costs can be placed into one of four categories. One of these categories is external failure costs. Which of the following describes one of the two external failure cost categories? a. Costs incurred to detect pollution caused by the firm b. Costs incurred to prevent pollution from contaminating the environment after pollution has been produced c. Pollution costs caused by the firm but paid for by society d. Costs incurred to prevent the production of pollutionarrow_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. 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-6arrow_forward
- 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 productarrow_forwardAnswer classify with explanationarrow_forward1. Which of the following is NOT a key characteristic of Conformance Costs? a) They include expenses related to preventing defects. b) They are also known as Internal Failure Costs. e) They encompass activities like employee training and quality engineering. d) They are incurred to ensure defect-free products.arrow_forward
- Which of the following is not a prevention cost? a. testing finished products b. design engineering c. operator training d. preventive maintenancearrow_forwardSe.101.arrow_forwardClassify 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.…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. Prevention Appraisal Cost Internal Failure Cost External Failure Cost Activities 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 9 Inspection of goods h. Quality engineering Warranty repairs j Statistical process control k. Net cost of scrap L Depreciation of test equipment m. Returns and allowances arising from poor quality n. Disposal of production defects o. Technical support to suppliers p. Systems development q. Warranty replacements r. Field testing at customer site s. Quality training 2-n Which tune of costs are incurred in an effort to keen noor auality of conformance from occuirring?arrow_forwardWhich of the following is a prevention cost? a. Inspection of materials. b. Continuing supplier verification. c. Prototype inspection. d. Recalls.arrow_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
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