An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded.
Enter a zero in cells you would otherwise leave blank.
a. Classify the costs by entering their amounts in the appropriate columns. The column totals will be helpful for Parts b and c.
Internal External Value- Non-Value-
Quality Activities Prevention Appraisal Failure Failure Added Added
Billing error correction
Cable signal testing
Reinstalling service (install incorrectly the first time)
Repairing satellite equipment
Repairing underground cable connections to the customer
Replacing old technology cable with higher quality cable
Replacing old technology signal switches with higher quality switches
Responding to customer home repair requests
Training employees
Total
b.
Percent of Percent of
Quality Cost Quality Total Total
Classification Cost Quality Cost Sales
Prevention
Appraisal
Internal failure
External failure
Total
c.
Category Amount Percent
d.
[Key essay answer here]
VA/NVA
Three Rivers Inc.
Cost of Quality Report
Cost Summary
Quality Cost Classification
Three Rivers Inc.
Value-Added/Non-Value-Added Activity Analysis
Exercise 27(13)-18
Name:
Section:
0%
[Key code here]
Score:
Key Code:
An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded.
Enter a zero in cells you would otherwise leave blank.
a. Classify the costs by entering their amounts in the appropriate columns. The column totals will be helpful for Parts b and c.
Internal External Value- Non-Value-
Quality Activities Prevention Appraisal Failure Failure Added Added
b.
Percent of Percent of
Quality Cost Quality Total Total
c.
Category Amount Percent
d.
VA/NVA
The reports indicate that Three Rivers Inc.’s total costs of quality are 25.1% of total sales. In addition, 54%
Cost of Quality Report
Cost Summary
Three Rivers Inc.
Value-Added/Non-Value-Added Activity Analysis
Quality Cost Classification
Three Rivers Inc.
ON
Score:
Exercise 27(13)-18
Name:
Solution
Section: