A quality control activity analysis indicated the following four activity costs of a hotel.Verifying credit card information$40,000Customer service training20,000Discounting room rates due to poor customer service16,050Correcting charges to customer invoices 8,000Total$84,050Sales are $750,000 for the year. Prepare a cost of quality report. Given the report you've prepared, what is your advice to hotel management?

Quality control activities assist you to notice issues along with your product or service, confirm…

Answered: A quality control activity analysis…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter13: Lean Manufacturing And Activity Analysis

Section: Chapter Questions

Problem 4BE

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A quality control activity analysis indicated the following four activity costs of a hotel.

Verifying credit card information	$40,000
Customer service training	20,000
Discounting room rates due to poor customer service	16,050
Correcting charges to customer invoices	8,000
Total	$84,050

Sales are $750,000 for the year. Prepare a cost of quality report. Given the report you've prepared, what is your advice to hotel management?

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