problem 5-21A

Problem 5-21A Assessing a quality control strategy The following quality cost report came from the records of Willoughby Company. Inventory inspection Reliability testing Testing equipment (depreciation) Internal failure costs Scrap External failure cost Warrantyrepairsandreplacement220,00022.22520,00034.57 Freight 48,0004.85100,0006.65 Customer relations 56,0005.66120,0007.98 Restocking and packaging Total external failure Grand total Required a. Explain the strategy that Willoughby Company initiated to control its quality costs. b. Indicate whether the strategy was successful or unsuccessful in reducing quality costs. c. Explain how the strategy likely affected customer satisfaction