Scan It Company manufactures computer scanners. The following table presents financial information for two years. a. Classify

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Scan It Company manufactures computer scanners. The following table presents financial information for two years.

a. Classify the above items into prevention, appraisal, internal failure, or external failure costs.
b. Calculate the percentage of each prevention, appraisal, internal failure, and external failure cost to sales for Year 1 and Year2.

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Managerial Accounting An Introduction to Concepts Methods and Uses

ISBN: 978-0324639766

10th Edition

Authors: Michael W. Maher, Clyde P. Stickney, Roman L. Weil

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Question Posted: May 31, 2012 04:17 AM

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Scan It Company manufactures computer scanners. The following table presents financial information for two years. a. Classify

Question:

Year 1 Year 2 Sales $2,000,000 $1,800,000 Quality Costs: Scrap Repair of returned goods Dealing with customer complaints Rework (goods spoiled during production) Materials inspection 15,000 35,000 23,000 150,000 55,000 16,000 40,000 28,000 150,000 40,000

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a and b Year 1 Year 2 Sales 2000000 1800000 Costs of Quality ...View the full answer

Managerial Accounting An Introduction to Concepts Methods and Uses

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