Carrie Lee, the president of Lee Enterprises, was concerned about the results of her companys new quality
Question:
Required
1. Prepare a spreadsheet that produces a cost-of-quality (COQ) report for both 2019 and 2020. For each individual cost, for each of the four category totals, and for total COQ spending calculate (to 2 decimal places, e.g., 42.884% = 42.88%) the percentage change from 2019 to 2020.
2. Use your spreadsheet to prepare a histogram showing total COQ spending and spending by COQ category.
3. Prepare a written evaluation to accompany the reports you have prepared in requirements 1 and 2. This evaluation should discuss the distribution of quality costs in the company, changes in this distribution that you detect have taken place over the last year, and any other information you believe would be useful to management.
4. A member of the management team believes that employees will be more conscientious in their work if they are held responsible for mistakes. He suggests that workers should do rework on their own time and that they also should pay for disposal of defective units and the cost of scrap. The proposal estimates that the firm can save another $400,000 in quality costs and the employees are less likely to make as many errors. Should the firm implement the proposal? Why or why not?
DistributionThe word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
Step by Step Answer:
Cost Management A Strategic Emphasis
ISBN: 9781259917028
8th Edition
Authors: Edward Blocher, David F. Stout, Paul Juras, Steven Smith