1. Appraisal 2. External failure 3. Prevention 4. Internal failure 5. Prevention 6. External failure 7. Appraisal |
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Type of cost a. Inspection of final products b. Sales returns of defective products c. Employee...
Listed below are eight components of the total cost of quality. In the spaceprovided identify each as a cost of prevention, appraisal, internal failure, or extemal failure 1. Product design 2. Product returns due to defects 3. Inspection of raw materials shipments 4. Employee training 5. Rework of defective units prior to shipment 6. Estimated lost sales due to poor quality 7. Warranty expense 8. Inspection of finished goods 9. Scrap
The following represents the financial information for Domingo Corporation for two months. March April $360,000 Sales revenue $540,000 Costs $ 1,550 1,820 Process inspection 1,940 1,870 13,300 Scrap Quality training Warranty repairs Product testing equipment Customer complaints 20,600 4,300 6,700 2,500 16,000 15,100 6,400 9,800 4,800 7,500 3,100 20,000 9,400 4,700 Rework Preventive maintenance Materials inspection Field testing 13,500 Required: a. Classify these items into Prevention, Appraisal, Internal failure, or External failure costs. b. Calculate the ratio of the prevention,...
Christianson Corp. manufactures radiation-shielding glass panels. (Click the icon to view the information.) Click the con Requirements 1. Classify each item as a prevention cost, an appraisal cost an internal failure cost, or an external failure cost. 2. Should Christianson implement the new quality program? Give your reason internal fallure cost, Requirement 1. Classify each item as a prevention cost, an appraisal cost, an internal failure cost or an external failure cost Type of Quality Cost Strength testing one item...
Exercise 14.10 Quality Cost ClassificationClassify the following quality costs as prevention costs, appraisal costs, internal failure costs, or external 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...
Homework: Ch 4 HW Score: 0 of 1 pt S4-16 (similar to) 8 of 8 (5 complete) HW Score: 48.72%, 3. Question H Terrordomo manufactures high-quality speakers. Suppose Terrordome is considering spending the following amounts on a new quality program: (Click the icon to view the information.) Terrordome expects this quality program to save costs as follows: FF (Click the icon to view the information) It also expects this program to avoid lost profits from the following: (Click the icon...
Required A Required B Calculate the ratio of the prevention, appraisal, internal failure, and external failure costs to sales for March and April. (Enter your answers as a percentage rounded to 1 decimal place (i.e., 32.1).) March April Prevention Appraisal Internal failure External failure % % % % % % % % The following represents the financial information for Domingo Corporation for two months. March $515,000 April $440,000 Sales revenue Costs Process inspection Scrap Quality training Warranty repairs Product testing...
Chapter 01 Problems Saved 5 1. A number of activities that are a part of a company's quality control system are listed below. 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. 5 points 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 g. Inspection...
1.
ADDTIONAL 20 MINUTES OF TESTING TO MAKE THEM EASIER TO
MANUFACTURE
Negotiating with and training suppliers to obtain higher quality
materials and on-time delivery
SAVINGS ON REWORK
SAVINGS ON WARRANTY REPAIR COST
REDISGNING THE SPEAKERS TO MAKE THEM EASIER TO MANUFACTURE
SAVINGS ON INSPECTION OF RAW MATERIALS
SAVINGS ON LOST PROFITS FROM LOST PRODUCTION DUE TO REWORK
SAVINGS ON LOST PRODUCTION FROM LOST SALES DUE TO DISSAPOINTED
CUSTOMERS
2.
SHOULD IMPLEMENT OR SHOULD NOT IMPLEMENT
SHOULD SAVE OR WOULD...
Learning Objective 52 Classifying quality costs and using these costs to make decisions Loiselle manufactures high-quality speakers. Suppose Loiselle is considering spending he following amounts on a new quality program: 2. Total cost to underta $2,305,000 $ 625,000 Additional 20 minutes testing for each speaker Negotiating and training suppliers to obtain higher-quality materials and on-time delivery Redesigning the speakers to make them easier to manufacture 430,000 1,250,000 Loiselle expects this quality program to save costs as follows: Reduce warranty repair...
Clason, Inc. manufactures door panels. Suppose Clason is considering spending the following amounts on a new total quality management (TQM) program (Click the icon to view the information. Clason expects the new program would save costs through the following: (Click the icon to view the information.) Read the requirements. e cost or Requirement 1. Classify each cost as a prevention cost, an appraisal cost, an internal failu an external failure cost. Cost Type of Quality Cost Strength-testing one item from...