In 20X2, Montanas manufacturing division implemented a system to report on quality costs. At the end of

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In 20X2, Montana’s manufacturing division implemented a system to report on quality costs. At the end of 20X5, the production manager wanted to know if quality costs were different from 20X3. The following cost of quality report was prepared by the production manager using cost data from both 20X3 and 20X5:

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Required:

1. Calculate the percentage of total quality cost for each cost of quality area for each year. Comment on your results.

2. Calculate the percentage of total quality cost with respect to total production costs for each year. Comment on your results.

3. For each cost of quality area, give two examples of the types of costs that could be included.

4. Evaluate overall quality performance in 20X5 compared to its 20X3 performance. What could have caused these changes?

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Related Book For  book-img-for-question

Introduction to Managerial Accounting

ISBN: 978-1259105708

5th Canadian edition

Authors: Peter C. Brewer, Ray H. Garrison, Eric Noreen, Suresh Kalagnanam, Ganesh Vaidyanathan

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