Florex Company | ||||
Quality Cost Report (Cost in thousands) | ||||
Last Year | This Year | |||
Annual Cost | % of Sales | Annual Cost | % of Sales | |
Prevention cost | (a) | (a) / $90000 | (b) | (b) / $90000 |
Quality Engineering | $ 450 | 0.50% | $ 720 | 0.80% |
System Development | $ 540 | 0.60% | $ 900 | 1.00% |
Statistical process control | $ - | 0.00% | $ 180 | 0.20% |
Total Prevention cost | $ 990 | 1.10% | $ 1,800 | 2.00% |
Appraisal Cost | ||||
Inspection | $ 900 | 1.00% | $ 1,503 | 1.67% |
Product testing | $ 1,080 | 1.20% | $ 1,350 | 1.50% |
Supplies used in testing | $ 45 | 0.05% | $ 72 | 0.08% |
Depreciation of testing equipment | $ 135 | 0.15% | $ 315 | 0.35% |
Total Appraisal Cost | $ 2,160 | 2.40% | $ 3,240 | 3.60% |
Internal Failure Cost | ||||
Net cost of scrap | $ 720 | 0.80% | $ 1,260 | 1.40% |
Rework labor | $ 1,080 | 1.20% | $ 1,890 | 2.10% |
Disposal of defective products | $ 900 | 1.00% | $ 900 | 1.00% |
Total Internal Failure Cost | $ 2,700 | 3.00% | $ 4,050 | 4.50% |
External failure costs | ||||
Cost of field servicing | $ 1,260 | 1.40% | $ 1,170 | 1.30% |
Warranty repairs | $ 4,680 | 5.20% | $ 1,530 | 1.70% |
Product recalls | $ 2,880 | 3.20% | $ 1,080 | 1.20% |
Total External failure costs | $ 8,820 | 9.80% | $ 3,780 | 4.20% |
Total Quality cost | $ 14,670 | 16.30% | $ 12,870 | 14.30% |
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In response to intensive foreign competition, the management of Florex Company has attempted over the past...
In response to intensive foreign competition, the management of Florex Company has attempted over the past year to improve the quality of its products. A statistical process control system has been installed and other steps have been taken to decrease the amount of warranty and other field costs, which have been trending upward over the past several years. Costs relating to quality and quality control over the last two years are given below. Year Costs in thousands) Last This Year...
Thank you! In response to intensive foreign competition, the management of Florex Company has attempted over the past year to improve the quality of its products. A statistical process control system has been installed and other steps have been taken to decrease the amount of warranty and other field costs, which have been trending upward over the past several years. Costs relating to quality and quality control over the last two years are given below. Year Costs in thousands) Last...
In response to Intensive foreign competition, the management of Florex Company has attempted over the past year to Improve the quality of its products. A statistical process control system has been Installed and other steps have been taken to decrease the amount of warranty and other field costs, which have been trending upward over the past several years. Costs relating to quality and quality control over the last two years are given below. Inspection Quality engineering Depreciation of test equipment...
In response to intensive foreign competition, the management of Florex Company has attempted over the past year to improve the quality of its products. A statistical process control system has been installed and other steps have been taken to decrease the amount of warranty and other field costs, which have been trending upward over the past several years. Costs relating to quality and quality control over the last two years are given below: Inspection Quality engineering Depreciation of test equipment...
In response to intensive foreign competition, the management of Florex Company has attempted over the past year to improve the quality of its products. A statistical process control system has been installed and other steps have been taken to decrease the amount of warranty and other field costs, which have been trending upward over the past several years. Costs relating to quality and quality control over the last two years are given below: Sales have been flat over the past...
Check my work In response to intensive foreign competition, the management of Florex Company has attempted over the past year to improve the quality of its products. A statistical process control system has been installed and other steps have been taken to decrease the amount of warranty and other field costs, which have been trending upward over the past several years. Costs relating to quality and quality control over the last two years are given below: Costs (in thousands) Last...
Problem 1A-4 Quality Cost Report [LO1-7, LO1-8] In response to intensive foreign competition, the management of Florex Company has attempted over the past year to improve the quality of its products. A statistical process control system has been installed and other steps have been taken to decrease the amount of warranty and other field costs, which have been trending upward over the past several years. Costs relating to quality and quality control over the last two years are given below:...
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