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Author Question: The CEO of Yuppie Prepared Meals is concerned about the amount of resources currently spent on ... (Read 35 times)

urbanoutfitters

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The CEO of Yuppie Prepared Meals is concerned about the amount of resources currently spent on customer warranty claims. Each box of snacks is printed with the guarantee: "Satisfaction
guaranteed or your money back." Since the claims are so high, she would like to evaluate
what costs are being incurred to ensure the quality of the product. The following information
was collected from various departments within the company:

Warranty claims$315,000
Cost of defective products found at the inspection point70,000
Training factory personnel.20,000
Recall of Batch #59374130,000
Inspecting products when halfway through the production process45,000
Cost of disposing of rejected products9,000
Preventive maintenance on factory equipment5,000
Production loss due to machine breakdowns12,000
Inspection of raw materials4,000

As the new cost accountant the CEO has requested that you complete the following Cost of Quality Report:


Costs
Incurred

Total Costs
of Quality
Percentage of
Total Costs
of Quality
Prevention Costs:
Total prevention costs
Appraisal Costs:
Total appraisal costs
Internal Failure Costs:
Total Internal Failure costs
External Failure Costs:
Total external failure costs
Total costs of quality


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Marked as best answer by urbanoutfitters on Jan 4, 2020

Ashley I

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urbanoutfitters

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Reply 2 on: Jan 4, 2020
:D TYSM


TheNamesImani

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

 

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