Business
Engineering
Math
Science
Social Science
Managerial Accounting: The Corners...
Solutions
Managerial Accounting: The Corners...
Quality Cost Report
Loring Company had total sales of $2,400,000 for fiscal 20X1. The costs of quality-related activities are given below.
Required:
- 1. Prepare a quality cost report, classifying costs by category and expressing each category as a percentage of sales. What message does the cost report provide?
- 2. Prepare a bar graph and pie chart that illustrate each category’s contribution to total quality costs. Comment on the significance of the distribution.
1.
Construct a report categorizing quality costs and expressing them as a percentage of sales.
Quality Cost:
Organizations are required to bear costs due to non-conformity of goods or services with the general specifications. These costs are termed as quality costs. Quality costs can be categorized into preventive costs, detective costs, internal failure costs and external failure costs.
Quality cost report:
| Category | Quality cost | Amount ($) | Total ($) | Percentage of sales (%) |
| Prevention cost | Vendor certification | 14,000 | 20,000 | 0.83 |
| Marketing research | 6,000 | |||
| Detection cost | Process acceptance | 14,000 | 30,000 | 1.25 |
| Field testing | 16,000 | |||
| Internal failure cost | Retesting | 30,000 | 150,000 | 6... |
2.
Construct a bar graph and a pie chart illustrating each category’s contribution to total quality cost.
Chapter 13 Solutions
Additional Business Solutions
Find more solutions based on key concepts
Show solutions addThe following information was taken from Oregon Corporations accounting records for 2019: Oregons statement of ...
Intermediate Accounting: Reporting And Analysis
Neptune Company issued a note receivable to Sailfish Company. (A) Who is the payee? (B) What is the title of th...
Corporate Financial Accounting
STATEMENT OF OWNERS EQUITY The capital account for Autumn Chou, including an additional investment, and a parti...
College Accounting, Chapters 1-27
Items on companys bank statement The following items may appear on a bank statement: 1. Bank correction of an e...
Financial And Managerial Accounting
(Appendix Question) Which statement is NOT correct? a. Indexed random files are dispersed throughoutthe storage...
Accounting Information Systems
On December 31, the following data were accumulated for preparing the adjusting entries for Bellingham Realty: ...
Financial Accounting
A business had revenues of 640,000 and operating expenses of 715,000. What was the amount of (A) net loss or (B...
Financial & Managerial Accounting
Pew Research Center is a nonpartisan polling organization that provides information about issues, attitudes, an...
STATISTICS F/BUSINESS+ECONOMICS-TEXT
What does double taxation of corporate income mean? Could income ever be subject to triple taxation? Explain yo...
Fundamentals of Financial Management (MindTap Course List)
What are the two subfields into which economics is divided? Explain what each subfield studies.
Principles of Microeconomics (MindTap Course List)
(Short-Run Profit Maximization) A monopolistically competitive firm faces the following demand and cost structu...
ECON: MICRO4 (New, Engaging Titles from 4LTR Press)
Discuss target market strategies
MKTG 12:STUDENT ED.-TEXT
If the Fed started printing large quantities of U.S. dollars, what would happen to the number of Japanese yen a...
Principles of Economics (MindTap Course List)
A point inside the production possibilities frontier is a. efficient but not feasible. b. feasible but not effi...
Essentials of Economics (MindTap Course List)
Describe the four layers of controls for restricting logical access to stored programs, data, and documentation...
Accounting Information Systems
Contrast how marketing plans differ at various levels in an organization.
Contemporary Marketing
An economy consists of three workers: Larry, Moe, and Curly. Each works 10 hours a day and can produce two serv...
Brief Principles of Macroeconomics (MindTap Course List)
INSTRUCTOR: Visit the Instructor Companion Website for lecture notes, solutions, discussion guides, and other r...
Essentials of Business Communication (MindTap Course List)
For each of the following items, circle either (a) or (b). In some cases, both (a) and (b) may apply to you. Yo...
Management, Loose-Leaf Version
How might productivity be measured in a dry cleaners? In a department store? In a public school system?
Foundations of Business (MindTap Course List)
Suppose that society decided to reduce consumption and increase investment. a. How would this change affect eco...
Principles of Macroeconomics (MindTap Course List)
CAPITAL BUDGETING CRITERIA A firm with a 14% WACC is evaluating two projects for this years capital budget. Aft...
Fundamentals of Financial Management, Concise Edition (MindTap Course List)
Issuing bonds at a discount On the first day of the fiscal year, a company issues a 1,200,000, 9%, five-year bo...
Accounting (Text Only)
Summary payroll data In the following summary of data for a payroll period, some amounts have been intentionall...
Financial & Managerial Accounting
The financial statements for Romeo and Company follow. Assume that the additional investment and the withdrawal...
College Accounting (Book Only): A Career Approach
Casebolt Company wrote off the following accounts receivable as uncollectible for the first year of its operati...
Financial Accounting
The FinancialTimes/Harris Poll is a monthly online poll of adults from six countries in Europe and the United S...
Statistics for Business & Economics, Revised (MindTap Course List)
Draw a standard supply and demand diagram for televisions, and indicate the equilibrium price and output. a. As...
Exploring Economics
What are the two definitions of cash, and why do corporate treasurers often use the second definition?
Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)
GENERAL JOURNAL ENTRIES Diane Bernick has opened Bernicks Consulting. Journalize the following transactions tha...
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
The following transactions were completed by Hammond Auto Supply during January, which is the first month of th...
College Accounting (Book Only): A Career Approach
What is accounts receivable master data?
Pkg Acc Infor Systems MS VISIO CD
The ability of insurance to spread risk is limited by a. risk aversion and moral hazard. b. risk aversion and a...
Principles of Macroeconomics (MindTap Course List)
DEFAULT RISK PREMIUM A companys 5-year bonds are yielding 7.75% per year. Treasury bonds with the same maturity...
Fundamentals of Financial Management (MindTap Course List)
Entries for notes receivable, including year-end entries The following selected transactions were completed by ...
Corporate Financial Accounting
Fred Burdette, married with two allowances, received his regular semimonthly wage of 1,450 on June 14. On June ...
PAYROLL ACCT.,2019 ED.(LL)-TEXT
Gross margin percent and markup percent Target Corp. (TGT) operates retail stores throughout the United States ...
Survey of Accounting (Accounting I)
Find the minimum perimeter rectangle having area 64 square feet. Can you generalize this result?
Practical Management Science
Frieling Company installs granite countertops in customers homes. First, the customer chooses the particular gr...
Cornerstones of Cost Management (Cornerstones Series)
In Exhibit 7, using Lorenz curve 2, calculate the approximate percentage of income that goes to the second-high...
Microeconomics
A person who voluntarily quits their job in New York and expects to get a similar job in Los Angeles is an exam...
Economics For Today
The economy of country X is currently growing at 2 percent a year. How many years will it take to double the Re...
Economics (MindTap Course List)
What is wrong with this statement: As the price of a good falls, the supply of that good falls, ceteris paribus...
Macroeconomics
Explain how some of the popular social networking software (e.g., Facebook, LinkedIn, and so forth) could be us...
Purchasing and Supply Chain Management
