Let's assume that Fahradd Company (a fictitious entity) manufactures and sells bicycles. In 2021 the company had
Question:
Let's assume that Fahradd Company (a fictitious entity) manufactures and sells bicycles. In 2021 the company had 2,000,000 kn in sales. The following information is available for Fahrrad in 2021:
Costs:
Returned goods 16.000 kn
Scrap 24.000 kn
Product design reviews 20.000 kn
Materials inspection 8.000 kn
Customer quality complaints 36.000 kn
Finished products inspection 40.000 kn
Quality testing 6.000 kn
Rework 10.000 kn
Employee quality training 60.000 kn.
Create a simple cost of quality report for Fahrrad Company.
Calculate prevention cost:
Calculate appraisal cost:
Calculate internal failure cost:
Calculate external failure cost:
Financial Accounting
ISBN: 978-0133472264
5th Canadian edition
Authors: Charles Horngren, William Thomas, Walter Harrison, Greg Berberich, Catherine Seguin