MKD Company's quality cost report is to be based on the following data:3,550,000Test and inspection of incoming materialsSupplies used in testing and inspection2,550,000Re-entering data because of keying errorsStatistical process control activitiesTechnical support provided to suppliers3,000,0004,100,0004,550,000Disposal of defective productsLost sales due to poor quality3,000,0004,350,000Net cost of crap4,250,000Warranty repairs and replacements3,500,000Required:Prepare a Quality Cost Report in good from with separate sections for prevention costs, appraisalcosts, internal failure costs, and external failure costs

The question is related to Quality Cost. The quality cost is classified into two 1. Cost of…

MKD Company's quality cost report is to be based on the following data: Test and inspection of incoming materials Supplies used in testing and inspection Re-entering data because of keying errors Statistical process control activities Technical support provided to suppliers Disposal of defective products Lost sales due to poor quality 3,550,000 2,550,000 3,000,000 4,100,000 4,550,000 3,000,000 4,350,000 Net cost of crap 4,250,000 Warranty repairs and replacements 3,500,000 Required: Prepare a Quality Cost Report in good from with separate sections for prevention costs, appraisal costs, internal failure costs, and external failure costs

MKD Company's quality cost report is to be based on the following data: Test and inspection of incoming materials Supplies used in testing and inspection Re-entering data because of keying errors Statistical process control activities Technical support provided to suppliers Disposal of defective products Lost sales due to poor quality 3,550,000 2,550,000 3,000,000 4,100,000 4,550,000 3,000,000 4,350,000 Net cost of crap 4,250,000 Warranty repairs and replacements 3,500,000 Required: Prepare a Quality Cost Report in good from with separate sections for prevention costs, appraisal costs, internal failure costs, and external failure costs

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter14: Quality And Environmental Cost Management

Section: Chapter Questions

Problem 25E: Which of the following quality costs is an internal failure cost? a. Inspection of reworked units b....

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Fabrick Company's quality cost report is to be based on the following data: Lost sales due to poor quality Quality data gathering, analysis, and reporting Net cost of spoilage Re-entering data because of keying errors Test and inspection of in-process goods Final product testing and inspection Statistical process control activities Returns arising from quality problems Downtime caused by quality problems $ 20,30 $ 63,306 $ 60,200 $ 24,100 $ 11,200 $ 44,400 $ 43,100 $ 36,100 $ 59,800 What would be the total appraisal cost appearing on the quality cost report? Multiple Choice $162,000 $91,300 $71.400 $55.600 [O ASUS ge here to search
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