Following is a list of quality-related activities. (a) Inspecting units when they are 100 per cent complete
Question:
Following is a list of quality-related activities.
(a) Inspecting units when they are 100 per cent complete to remove defective units.
(b) Designing a process with as few parts as possible to reduce the chance of defects.
(c) Warranty costs for defective products returned to the factory for rework.
(d) Reworking spoiled units before they leave the factory.
(e) Costs to defend the entity against lawsuits for damages caused by defective products.
(f) Tracking number of defects for each manufacturing team and posting daily defect rates on a plant-wide bulletin board.
(g) Redesigning a manufacturing process to lower the rate of defects.
Required
Mark each activity according to whether it pertains to prevention (P), appraisal (A), internal (I) or external (E) costs.
Step by Step Answer:
Management Accounting
ISBN: 9780730369387
4th Edition
Authors: Leslie G. Eldenburg, Albie Brooks, Judy Oliver, Gillian Vesty, Rodney Dormer, Vijaya Murthy, Nick Pawsey