Exercise 27-20 Cost of quality and value-added/non-value-added reports Mountain

Question

Exercise 27-20 Cost of quality and value-added/non-value-added reports Mountain States Cable Co. provides cable TV and Internet service to the local community. The activities and activity costs of Mountain States are identified as follows: Hide a. Prepare a cost of quality report. Assume that sales are $2,000,000. If required, round percentages to one decimal place. Mountain States Cable Company Cost of Quality Report Quality Cost Classification Quality Cost Percent of Total Quality Cost Percent of Total Sales Prevention $ % % Appraisal Internal failure External failure Total $ % % Hide b. Prepare a value-added/non-value-added analysis. Mountain States Cable Company Value-Added/Non-Value-Added Activity Analysis Category Amount Percent Value-added $ % Non-value-added Total $ % c. Interpret the information in (a) and (b).

Explanation / Answer

http://asq.org/learn-about-quality/cost-of-quality/overview/overview.html http://accounting4management.com/distribution_of_quality_costs.htm http://blog.lnsresearch.com/blog/bid/124741/Cost-of-Quality-Definition hope the following links help you

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