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Author Question: The CEO of Oakville Machine Parts (OMP) is concerned with the quality of its products and theamount ... (Read 44 times)

Chloeellawright

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on: Jan 4, 2020
The CEO of Oakville Machine Parts (OMP) is concerned with the quality of its products and the
amount of resources currently spent on customer returns. The CEO would like to analyze the
costs incurred in conjunction with the quality of the product.

The following information was collected from various departments within the company:

Warranty returns$240,000
Training personnel20,000
Litigation on product liability claims350,000
Inspecting 10% of final products10,000
Rework20,000
Production loss due to machine breakdowns90,000
Inspection of raw materials10,000

Required:
A. Complete the Cost of Quality Report.
B. Do any additional subjective costs appear to be missing from the report?
C. What can be learned from the report?

​Costs
Incurred		Total Costs
of Quality		Percentage of
Total Costs
 of Quality
Prevention Costs:​​​
Personnel training​​​
Total prevention costs​​​
Appraisal Costs:​​​
Inspecting raw materials​​​
Inspecting 10% of final products​​​
Total appraisal costs​​​
Internal Failure Costs:​​​
Rework​​​
Production loss due to
machine breakdown		​​​
Total internal failure costs​​​
External Failure Costs:​​​
Litigation costs from product liability claims​​​
Warranty return costs​​​
Total external failure costs​​​
Total costs of quality​​​
Managerial Accounting, Canadian Edition ¦ Braun, Tietz, Pyper ¦ 2nd Edition
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Marked as best answer by Chloeellawright on Jan 4, 2020

cat123

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Reply #1 on: Jan 4, 2020
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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Chloeellawright

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Reply 2 on: Jan 4, 2020
Gracias!

cam1229

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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