Quality cost report: It is a report which gives detailed information on various costs, for instance, appraisal cost, internal or external failure cost and prevention costs. This report is very essential as it helps the managers at the time of estimation of financial consequence required by the company. To prepare: A quality cost report for the two years.

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Answer 1

Question

Chapter 1A, Problem 1A.4P

1.

To determine

Concept Introduction:

Quality cost report: It is a report which gives detailed information on various costs, for instance, appraisal cost, internal or external failure cost and prevention costs. This report is very essential as it helps the managers at the time of estimation of financial consequence required by the company.

To prepare: A quality cost report for the two years.

2.

To determine

Concept Introduction:

Quality cost report: It is a report which gives detailed information on various costs for instance, appraisal cost, internal or external failure cost and prevention costs. This report is very essential as it helps the managers at the time of estimation of financial consequence required by the company.

To prepare: A bar graph depicting the category-wise distribution of the various costs.

3.

To determine

Concept Introduction:

Quality cost report: It is a report which gives detailed information on various costs for instance, appraisal cost, internal or external failure cost and prevention costs. This report is very essential as it helps the managers at the time of estimation of financial consequence required by the company.

To evaluate: The reports prepared in (1) and (2).

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In response to intense foreign competition, Florex Company has taken steps to improve the quality of its products. A summary of its quality costs (in thousands) over the past two years is given below: Last Year Inspection $ 765 $ 1,584 $ 540 $ 675 $630 $ 225 $ 1,260 $ 1,620 $O $ 225 $ 1,710 $ 1,170 $ 45 $ 81 $ 630 $ 900 $ 4,140 $ 1,260 $ 540 $ 1,530 $ 900 $ 1,440 $ 2,700 $ 990 Disposal of production defects $ 900 $ 900 Sales have been flat over the past few years, at $90,000,000 per year. Required: 1. Prepare a quality cost report for this year and last year. Quality engineering Depreciation of test equipment Rework labor Costs (in thousands) This Year Statistical process control Cost of field servicing Supplies used in testing Systems development Warranty repairs Net cost of scrap Product testing Product recalls

Problem 12-19 (Algo) Quality Cost Report [LO12-2] In response to intense foreign competition, Florex Company has taken steps to improve the quality of its products. A summary of its quality costs (in thousands) over the past two years is given below: Inspection Quality engineering Depreciation of test equipment Rework labor Statistical process control Cost of field servicing Supplies used in testing Systems development Warranty repairs Costs (in thousands) Last Year $ 630 $ 540 $495 $ 1,080 $ 8 $ 1,260 $ 45 $ 720 $ 4,680 $ 720 This Year $918 $ 728 $ 180 $ 1,530 $ 270 $ 1,178 $ 72 $ 900 $ 1,448 $ 1,440 Net cost of scrap Product testing Product recalls Disposal of production defects $ 990 $ 1,710 $ 2,610 $ 990 $980 $ 1,080 Sales have been flat over the past few years, at $90,000,000 per year. Required: 1. Prepare a quality cost report for this year and last year. Note: Enter amount values in thousands. Round your percentage answers to 2 decimal places (1.e 0.1234 should be entered as…

In response to intensive foreign competition, the management of Florex Company has attempted over the past year to improve the quality of its products. A statistical process control system has been installed and other steps have been taken to decrease the amount of warranty and other field costs, which have been trending upward over the past several years. Costs relating to quality and quality control over the last two years are given below: Costs (in thousands) Last 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 Sales have been flat over the past few years, at $90,000,000 per year. A great deal of money has been spent in…

Answer 2

Question

Chapter 1A, Problem 1A.4P

1.

To determine

Concept Introduction:

Quality cost report: It is a report which gives detailed information on various costs, for instance, appraisal cost, internal or external failure cost and prevention costs. This report is very essential as it helps the managers at the time of estimation of financial consequence required by the company.

To prepare: A quality cost report for the two years.

2.

To determine

Concept Introduction:

Quality cost report: It is a report which gives detailed information on various costs for instance, appraisal cost, internal or external failure cost and prevention costs. This report is very essential as it helps the managers at the time of estimation of financial consequence required by the company.

To prepare: A bar graph depicting the category-wise distribution of the various costs.

3.

To determine

Concept Introduction:

Quality cost report: It is a report which gives detailed information on various costs for instance, appraisal cost, internal or external failure cost and prevention costs. This report is very essential as it helps the managers at the time of estimation of financial consequence required by the company.

To evaluate: The reports prepared in (1) and (2).

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Answer 3

Question

Chapter 1A, Problem 1A.4P

1.

To determine

Concept Introduction:

Quality cost report: It is a report which gives detailed information on various costs, for instance, appraisal cost, internal or external failure cost and prevention costs. This report is very essential as it helps the managers at the time of estimation of financial consequence required by the company.

To prepare: A quality cost report for the two years.

2.

To determine

Concept Introduction:

Quality cost report: It is a report which gives detailed information on various costs for instance, appraisal cost, internal or external failure cost and prevention costs. This report is very essential as it helps the managers at the time of estimation of financial consequence required by the company.

To prepare: A bar graph depicting the category-wise distribution of the various costs.

3.

To determine

Concept Introduction:

Quality cost report: It is a report which gives detailed information on various costs for instance, appraisal cost, internal or external failure cost and prevention costs. This report is very essential as it helps the managers at the time of estimation of financial consequence required by the company.

To evaluate: The reports prepared in (1) and (2).

Expert Solution & Answer

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Answer 4

Question

Chapter 1A, Problem 1A.4P

1.

To determine

Concept Introduction:

Quality cost report: It is a report which gives detailed information on various costs, for instance, appraisal cost, internal or external failure cost and prevention costs. This report is very essential as it helps the managers at the time of estimation of financial consequence required by the company.

To prepare: A quality cost report for the two years.

2.

To determine

Concept Introduction:

Quality cost report: It is a report which gives detailed information on various costs for instance, appraisal cost, internal or external failure cost and prevention costs. This report is very essential as it helps the managers at the time of estimation of financial consequence required by the company.

To prepare: A bar graph depicting the category-wise distribution of the various costs.

3.

To determine

Concept Introduction:

Quality cost report: It is a report which gives detailed information on various costs for instance, appraisal cost, internal or external failure cost and prevention costs. This report is very essential as it helps the managers at the time of estimation of financial consequence required by the company.

To evaluate: The reports prepared in (1) and (2).

Expert Solution & Answer

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Answer 5

Chapter 1A, Problem 1A.4P

1.

To determine

Concept Introduction:

Quality cost report: It is a report which gives detailed information on various costs, for instance, appraisal cost, internal or external failure cost and prevention costs. This report is very essential as it helps the managers at the time of estimation of financial consequence required by the company.

To prepare: A quality cost report for the two years.

2.

To determine

Concept Introduction:

Quality cost report: It is a report which gives detailed information on various costs for instance, appraisal cost, internal or external failure cost and prevention costs. This report is very essential as it helps the managers at the time of estimation of financial consequence required by the company.

To prepare: A bar graph depicting the category-wise distribution of the various costs.

3.

To determine

Concept Introduction:

Quality cost report: It is a report which gives detailed information on various costs for instance, appraisal cost, internal or external failure cost and prevention costs. This report is very essential as it helps the managers at the time of estimation of financial consequence required by the company.

To evaluate: The reports prepared in (1) and (2).

Answer 6

Chapter 1A, Problem 1A.4P

1.

To determine

Concept Introduction:

Quality cost report: It is a report which gives detailed information on various costs, for instance, appraisal cost, internal or external failure cost and prevention costs. This report is very essential as it helps the managers at the time of estimation of financial consequence required by the company.

To prepare: A quality cost report for the two years.

Answer 7

Chapter 1A, Problem 1A.4P

1.

To determine

Concept Introduction:

Quality cost report: It is a report which gives detailed information on various costs, for instance, appraisal cost, internal or external failure cost and prevention costs. This report is very essential as it helps the managers at the time of estimation of financial consequence required by the company.

To prepare: A quality cost report for the two years.

Answer 8

2.

To determine

Concept Introduction:

Quality cost report: It is a report which gives detailed information on various costs for instance, appraisal cost, internal or external failure cost and prevention costs. This report is very essential as it helps the managers at the time of estimation of financial consequence required by the company.

To prepare: A bar graph depicting the category-wise distribution of the various costs.

Answer 9

2.

To determine

Concept Introduction:

Quality cost report: It is a report which gives detailed information on various costs for instance, appraisal cost, internal or external failure cost and prevention costs. This report is very essential as it helps the managers at the time of estimation of financial consequence required by the company.

To prepare: A bar graph depicting the category-wise distribution of the various costs.

Answer 10

3.

To determine

Concept Introduction:

Quality cost report: It is a report which gives detailed information on various costs for instance, appraisal cost, internal or external failure cost and prevention costs. This report is very essential as it helps the managers at the time of estimation of financial consequence required by the company.

To evaluate: The reports prepared in (1) and (2).

Answer 11

3.

To determine

Concept Introduction:

Quality cost report: It is a report which gives detailed information on various costs for instance, appraisal cost, internal or external failure cost and prevention costs. This report is very essential as it helps the managers at the time of estimation of financial consequence required by the company.

To evaluate: The reports prepared in (1) and (2).

Answer 12

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Answer 13

Expert Solution & Answer

Answer 14

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Answer 15

Ch. 1A - Cost of Quality Terms LO1â€”7, LO1â€”8 A number of...Ch. 1A - Prob. 1A.2P Ch. 1A - Analyzing a Quality Cost Report LO1â€”8 Mercury,...Ch. 1A - Prob. 1A.4P

Solution Summary: The author explains the importance of a quality cost report, which gives detailed information on various costs, such as appraisal, internal or external failure, and prevention.

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Chapter 1A Solutions