Following is a list of quality-related activities: Type Quality Activity ____ 1. Inspection of units when they are 100% complete to remove defective units ____ 2. Designing a process with as few parts as possible to reduce the chance of defects ____ 3. Warranty costs for defective products returned to the factory for rework ____ 4. Reworking spoiled units before they leave the factory ____ 5. Costs to defend the company against lawsuits for damages caused by defective products ____ 6. Tracking number of defects for each manufacturing team and posting daily defect rates on a plant-wide bulletin board ____ 7. Redesigning a manufacturing process to lower the rate of defects
REQUIRED Mark each activity according to whether it pertains to the internal costs of prevention (P), appraisal (A), production (PR), or post sales (PS) costs.
Students also viewed these Managerial Accounting questions
Following is a list of eight generic control goals from the chapter, followed by eight...... F.... is compared to the total dollars of payments being processed. 8. Levers Corporation recorded as sales some shipments of disk drives between their warehouses. These disks drives had not been ordered by...
Following is a list of six control plans from this chapter (or from earlier chapters and tailored...... F.... zero balance, but it consistently shows either a debit or credit balance. 4. The supervisor of an operating department prepared a fictitious attendance time record for a nonexistent...
Following is a list of five control plans from this chapter (or from earlier chapters and tailored...... ... the data entry clerk misread all 7s as 9s. Although some time data were rejected, other data were processed against wrong employees, who happened to have a 9 instead of a 7 in the comparable...
Karsted Air Services is now in the final year of a project. The equipment originally cost $29 million, of which 75% has been depreciated. Karsted can sell the used equipment today for $8 million, and its tax rate is 35%. What is the equipment’s after-tax salvage value ?
Boreki Enterprise has the following 10 items in inventory. Theodore Boreki asks you, a recent OM graduate, to divide these items into ABC classification. (a) Develop an ABC classification system for the 10 items.(b) How can Boreki use this information?(c) Boreki reviews the classification and then...
Wadlington Ltd is a manufacturer of electronics. The global shortage of microchips means that Wadlington Ltd is unable to operate its production facilities at full capacity. As a result, the company’s management has to decide how many of its three products to schedule for production in the...
Consider a drilling machine in a factory. It could be in one of three different states: G, in which it is working normally (making good parts); B in which it is working but producing bad parts; or D, in which it is under repair (down\") and not making parts. Transitions can occur at times 0, 30...
New-Rage Cosmetics uses a traditional cost accounting system to allocate quality control costs uniformly to all products at a rate of 14.5% of direct labor cost. Monthly direct labor cost for Satin Sheen makeup is $27,500. In an attempt to more equitably distribute quality control costs, New-Rage...
Following is a list of steps that must be performed in setting up an ABC system:_____ Identify and sum the costs into activity-based cost pools._____ Choose a cost driver for each activity._____ For each ABC cost pool, allocate overhead costs to the product or service._____ Identify the relevant...
The formula gives the monthly mortgage payment M on a home loan of P dollars at interest rate r, where n is the total number of payments (12 times the number of years). The cost of a house is $124,000. The down payment is $20,000, the interest rate is 5 34 %, and the loan period is 30 years. What...