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Managerial Accounting: The Corners...

7th Edition
Maryanne M. Mowen + 2 others
ISBN: 9781337115773

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BuyFindarrow_forward

Managerial Accounting: The Corners...

7th Edition
Maryanne M. Mowen + 2 others
ISBN: 9781337115773
Textbook Problem
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Pintura Company implemented a quality improvement program and tracked the following for the five years:

Chapter 13, Problem 30BEB, Pintura Company implemented a quality improvement program and tracked the following for the five , example  1

By cost category as a percentage of sales for the same period of time:

Chapter 13, Problem 30BEB, Pintura Company implemented a quality improvement program and tracked the following for the five , example  2

Required:

  1. 1. Prepare a bar graph that reveals the trend in quality cost as a percentage of sales (time on the horizontal axis and percentages on the vertical). Comment on the message of the graph.
  2. 2. Prepare a bar graph for each cost category as a percentage of sales. What does this graph tell you?

1.

To determine

Construct a bar graph depicting trend of percentage of quality costs in years 20X1 to 20X5.

Explanation

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...

2.

To determine

Construct a category wise bar graph.

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