MANAGERIAL ACCOUNTING-CUSTOM EBOOK>I<
12th Edition
ISBN: 9781307661217
Author: HILTON
Publisher: INTER MCG2
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Question
Chapter 1, Problem 31P
1.
To determine
Discuss the ethical considerations that Person M must recognize while deciding the method to proceed.
2 (a)
To determine
Discuss the ethical responsibilities that must be accepted by controller.
2 (b)
To determine
Discuss the ethical responsibilities that must be accepted by the quality control engineer.
2(c)
To determine
Discuss the ethical responsibilities that must be accepted by the plant manager.
3.
To determine
Discuss the role of Person A.
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Mercury, Incorporated, produces cell phones at its plant in Texas. A year ago, a consumer survey ranked the company's cell phones
low in product quality. Shocked by this result, Jorge Gomez, Mercury's president, 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. After working together for a year, the task force prepared the quality cost report shown
below:
Prevention costs:
Machine maintenance
Training suppliers
Quality circles
Total prevention cost
Appraisal costs:
Incoming inspection
Final testing
Total appraisal cost
Internal failure costs:
Rework
Scrap
Total internal failure cost
External failure costs:
Warranty repairs
Customer returns
Mercury, Incorporated
Quality Cost Report
(in thousands)
Total external failure cost
Total quality cost
Total production cost
Prevention costs:
Machine maintenance
Training suppliers
Quality…
Richins Company is considering the acquisition of a computerized manufacturing system. The new system has a built in quality function that increases the control over product specifications. An alarm sounds whenever the product falls outside the programmed specifications. An operator can then make some adjustments on the spot to restore the desired product quality. The system is expected to decrease the number of units scrapped because of poor quality. The system is also expected to decrease the amount of labor inputs needed. The production manager is pushing for the aquisition because he believes that productivity will be greatly enhanced - particularly when it comes to labor and material inputs. Output and input data follow. The data for the computerized system are projections.
Current System Computerized System Output (units)…
Fabrick Company's quality cost report is to be based on the following data:
Lost sales due to poor quality
Quality data gathering, analysis, and reporting
Net cost of spoilage
Re-entering data because of keying errors
Test and inspection of in-process goods
Final product testing and inspection
Statistical process control activities
Returns arising from quality problems
Downtime caused by quality problems
$ 20,30
$ 63,306
$ 60,200
$ 24,100
$ 11,200
$ 44,400
$ 43,100
$ 36,100
$ 59,800
What would be the total appraisal cost appearing on the quality cost report?
Multiple Choice
$162,000
$91,300
$71.400
$55.600
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Chapter 1 Solutions
MANAGERIAL ACCOUNTING-CUSTOM EBOOK>I<
Ch. 1 - Prob. 1RQCh. 1 - Prob. 2RQCh. 1 - List and define the four basic management...Ch. 1 - Prob. 4RQCh. 1 - Prob. 5RQCh. 1 - List and describe four important differences...Ch. 1 - Distinguish between cost accounting and managerial...Ch. 1 - Prob. 8RQCh. 1 - Prob. 9RQCh. 1 - How could your college or university use the...
Ch. 1 - What does the following statement by a managerial...Ch. 1 - What is meant by the following statement?...Ch. 1 - Prob. 13RQCh. 1 - Prob. 14RQCh. 1 - Prob. 15RQCh. 1 - Prob. 16RQCh. 1 - Prob. 17RQCh. 1 - What is meant by the term non-value-added costs?Ch. 1 - Can managerial accounting play an important role...Ch. 1 - Prob. 21RQCh. 1 - Prob. 22RQCh. 1 - Name several activities in the value chain of (a)...Ch. 1 - Define the term strategic cost management.Ch. 1 - Give an example of managerial accounting...Ch. 1 - For each of the following activities, explain...Ch. 1 - Susan Lopez, a consultant with Deloitte Young,...Ch. 1 - Prob. 31PCh. 1 - Urban Elite Apparel designs womens apparel and...Ch. 1 - Prob. 33C
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