compute the company’s costs for good quality, as well as sales and cost indices. Discuss what this company’s quality management strategy appears to be.

Quickbooks Online Accounting
3rd Edition
ISBN:9780357391693
Author:Owen
Publisher:Owen
Chapter5: Operating Activities: Purchases And Cash Payments
Section: Chapter Questions
Problem 3.3C
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Q19) Using the data in the following table, compute the company’s costs for good quality, as well as sales and cost indices. Discuss what this company’s quality management strategy appears to be.

Quality Costs
2008
2009
2010
2011
Prevention
872
603
341
721
Appraisal
979
931
3105
1473
Internal Failure
1699
2556
3581
3172
External Failure
870
829
1609
1987
Total
Accounting Measures
Sales:
37364
37135
39276
41476
Manufacturing Costs:
15882
15511
16111
16196
Transcribed Image Text:Quality Costs 2008 2009 2010 2011 Prevention 872 603 341 721 Appraisal 979 931 3105 1473 Internal Failure 1699 2556 3581 3172 External Failure 870 829 1609 1987 Total Accounting Measures Sales: 37364 37135 39276 41476 Manufacturing Costs: 15882 15511 16111 16196
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