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Enter a zero in cells you would otherwise leave blank.
1.
Completion of the following table will be helpful in developing the reports for requirements 2 and 3 below.
Activity
Quality Activities Cost
Correcting invoice errors
Disposing of incoming materials with poor quality
Disposing of scrap
Expediting late production
Final inspecting
Inspecting incoming materials
Inspecting work in process
Preventive machine maintenance
Producing product
Responding to customer quality complaints
Total
2.
Percent of
Quality Cost
Activity Total
Classification Cost
Quality Cost
Prevention
Appraisal
Internal failure
External failure
Not a cost of quality
Total
3.
Category Amount Percent
Value-added
Non-value-added
Total
4.
Score:
Key Code:
Instructions
Exercise 27(12)-4B
Name:
Section:
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0%
[Key code here]
Answers are entered in the cells with gray backgrounds.
$120,000
Value-Added/
Cost of Quality
Classification
Non-Value-Added
Classification
MISSION INC.
Value-Added/Non-Value-Added Activity Analysis
$0
MISSION INC.
Cost of Quality Report
$100,000
$40,000
$20,000
Cost Summary
$80,000
$60,000
An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded.
Enter a zero in cells you would otherwise leave blank.
1.
Completion of the following table will be helpful in developing the reports for requirements 2 and 3 below.
Activity
Quality Activities Cost
Appraisal
Appraisal
Internal failure
Internal failure
Not a quality cost
Internal failure
Appraisal
Non-value-added
Non-value-added
Non-value-added
Correcting invoice errors 7,500$
2.
Percent of
Quality Cost Activity Total
Classification Cost Quality Cost
Prevention 15,000$ 6.0%
Appraisal 50,000 20.0%
3.
Category Amount Percent
Value-added 162,500$ 65%
Score:
$100,000
$120,000
$80,000
Exercise 27(12)-4B
Name:
Solution
Section:
ON
Instructions
Answers are entered in the cells with gray backgrounds.
Value-Added/
Non-Value-Added
Classification
Non-value-added
Pareto Chart⎯Department Activities
External failure
Cost Summary
Cells with non-gray backgrounds are protected and cannot be edited.
MISSION INC.
Value-Added/Non-Value-Added Activity Analysis
$60,000
Cost of Quality Report
MISSION INC.
Cost of Quality
Classification