EBK HORNGREN'S COST ACCOUNTING
16th Edition
ISBN: 9780134475950
Author: Datar
Publisher: PEARSON CO
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Textbook Question
Chapter 19, Problem 19.27E
Nonfinancial measures of quality and time. For the past two years, Worldwide Cell Phones (WCP) has been working to improve the quality of its phones. Data for 2016 and 2017 follows (in thousands of phones):
2016 | 2017 | |
Cell phones produced and shipped | 2,500 | 10,000 |
Number of defective units shipped | 125 | 400 |
Number of customer complaints | 190 | 250 |
Units reworked before shipping | 150 | 700 |
Manufacturing cycle time | 13 days | 14 days |
Average customer-response time | 28 days | 26 days |
- 1. For each year, 2016 and 2017, calculate the following:
Required
- a. Percentage of defective units shipped
- b. Customer complaints as a percentage of units shipped
- c. Percentage of units reworked during production
- d. Manufacturing cycle time as a percentage of total time from order to delivery
- 2. Referring to the information computed in requirement 1, explain whether WCP’s quality and timeliness have improved.
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In response to intensive foreign competition, the management of Florex Company has attempted over the past year to improve the
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Costs (in thousands)
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This
Year
Year
$ 1,584
Inspection
Quality engineering
Depreciation of test eguipment
765
540
675
630
225
$ 1,260
$ 1,620
225
Rework labor
Statistical process control
Cost of field servicing
$ 1,710
1,170
81
Supplies used in testing
Systems development
Warranty repairs
Net cost of scrap
Product testing
Product recalls
45
630
900
1,260
24
4,140
1,530
$ 1,440
990
540
900
$ 2,700
900
Disposal of defective products
900
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Chapter 19 Solutions
EBK HORNGREN'S COST ACCOUNTING
Ch. 19 - Describe two benefits of improving quality.Ch. 19 - Prob. 19.2QCh. 19 - Name two items classified as prevention costs.Ch. 19 - Give two examples of appraisal costs.Ch. 19 - Distinguish between internal failure costs and...Ch. 19 - Describe three methods that companies use to...Ch. 19 - Companies should focus on financial measures of...Ch. 19 - Give two examples of nonfinancial measures of...Ch. 19 - Give two examples of nonfinancial measures of...Ch. 19 - When evaluating alternative ways to improve...
Ch. 19 - Distinguish between customer-response time and...Ch. 19 - Prob. 19.12QCh. 19 - Give two reasons why delays occur.Ch. 19 - Companies should always make and sell all products...Ch. 19 - Prob. 19.15QCh. 19 - Rector Corporation is examining its quality...Ch. 19 - Six Sigma is a continuous quality improvement...Ch. 19 - Costs of quality. (CMA, adapted) Osborn, Inc.,...Ch. 19 - Costs of quality analysis. Adirondack Company...Ch. 19 - Costs-of-quality analysis. Safe Travel produces...Ch. 19 - Costs of quality, quality improvement. iCover...Ch. 19 - Prob. 19.22ECh. 19 - Prob. 19.23ECh. 19 - Waiting time. Its a Dogs World (IDW) makes toys...Ch. 19 - Waiting time, service industry. The registration...Ch. 19 - Waiting time, cost considerations, customer...Ch. 19 - Nonfinancial measures of quality and time. For the...Ch. 19 - Nonfinancial measures of quality, manufacturing...Ch. 19 - Statistical quality control. Harvest Cereals...Ch. 19 - Quality improvement, Pareto diagram,...Ch. 19 - Quality improvement, relevant costs, and relevant...Ch. 19 - Quality improvement, relevant costs, and relevant...Ch. 19 - Waiting times, manufacturing cycle times. The...Ch. 19 - Prob. 19.34PCh. 19 - Manufacturing cycle times, relevant revenues, and...Ch. 19 - Compensation linked with profitability, waiting...Ch. 19 - Ethics and quality. Weston Corporation...Ch. 19 - Prob. 19.38P
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Inspection and Quality control in Manufacturing. What is quality inspection?; Author: Educationleaves;https://www.youtube.com/watch?v=Ey4MqC7Kp7g;License: Standard youtube license