Sales are $1,000,000. Prepare a cost of quality report. Round the percent of tot

Question

Sales are $1,000,000. Prepare a cost of quality report. Round the percent of total sales to one decimal place.

   

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

$  

  %

  %

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Sales are $1,000,000. Prepare a cost of quality report. Round the percent of total sales to one decimal place.

   

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

$  

  %

  %

Explanation / Answer

We will have to determine the appropriate cost classification for each type of activity provided in the question. The classification has been done as follows:

_______

The complete table is given below:

Activity Cost Classification Rework Internal Faliure Cost Inspecting Incoming Raw Materials Appraisal Cost Warranty Work External Faliure Cost Process Improvement Effort Prevention Cost

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