MANAGERIAL ACCOUNTING - CONNECT ACCESS E
MANAGERIAL ACCOUNTING - CONNECT ACCESS E
17th Edition
ISBN: 9781264286577
Author: Garrison
Publisher: MCG
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Chapter 12, Problem 17P

1.

To determine

A quality cost report is a detailed report of the prevention costs, appraisal costs, internal failure costs, and external failure costs. This report depicts management's efforts to achieve the quality of conformance. The quality cost report assists management in tracking its progress toward cost reduction and quality improvement.

To determine the cost percentages for total production and quality costs.

To determine

A quality cost report is a detailed report of the prevention costs, appraisal costs, internal failure costs, and external failure costs. This report depicts the efforts of the management to achieve the quality of conformance. The quality cost report aids management in tracking its progress toward cost reduction and quality improvement.

Whether the quality improvement programs increase the workload in the production department or not.

3

To determine

A quality cost report is a detailed report on the costs of prevention, appraisal, internal failure, and external failure. This report depicts management's efforts to achieve the quality of conformance. The quality cost report helps monitor the management's progress in reducing costs and improving quality.

To measure the cost of not implementing the quality improvement program.

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Mercury, Incorporated, produces cell phones at its plant in Texas. In recent years, the company's market share has been eroded by stiff competition from overseas. Price and product quality are the two key areas in which companies compete in this market. A year ago, the company's cell phones had been ranked low in product quality in a consumer survey. Shocked by this result, Jorge Gomez, Mercury's president, initiated an intense effort to improve product quality. Gomez set up a task force to implement a formal quality improvement program. Included on this task force were representatives from the Engineering, Marketing, Customer Service, Production, and Accounting departments. The broad representation was needed because Gomez believed that this was a companywide program and that all employees should share the responsibility for its success. After the first meeting of the task force, Holly Elsoe, manager of the Marketing Department, asked John Tran, production manager, what he thought of…
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