Question: The cost analyst at Computer Point, Inc. has identified the following costs (given in the table) over the last month. Classify these costs into different

The cost analyst at Computer Point, Inc. has identified the following costs (given in the table) over the last month. Classify these costs into different cost categories (prevention, appraisal, internal failure, external failure); based on your classification, where/which area should the firm focus/prioritize their quality efforts on?

Cost	Amount
Rework	$153,000
Rejected disks (loaded)	$22,950
Rejected disks (blank)	$13,770
Inspection costs (extra)--incoming	$104,040
Inspection costs (extra)--outgoing	$49,725
Customer returns	$275,400
Training and system improvement costs	$21,420
System downtime	$67,320

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!

The cost analyst at Computer Point, Inc. has identified the following costs (given in the table) over the last month. Classify these costs into different cost categories (prevention, appraisal,...

3) The cost analyst at Computer Point, Inc. has identified the following costs (given in the table) over the last month. Classify these costs into different cost categories (prevention, appraisal,...

The cost analyst at Computer Point, Inc. has identified the following costs (given in the table) over the last month. Classify these costs into different cost categories (prevention, appraisal,...

1) Faastprint has identified the following costs given in the table for the month of December 22. a) Classify the various quality costs into the different quality cost categories (prevention,...

The cost analyst at Multiprint has identified the following costs ( given in the table ) over the last: month. The firm wants to classify these costs into different cost categories ( prevention ,...

The cost analyst at Multiprint has identified the following costs ( given in the table ) over the last month. The firm wants to classify these costs into different cost categories ( prevention ,...

The Federated Screw Company manufactures a wide variety of made-to-order screws for industrial companies. Customers usually supply the designs. Total manufacturing payroll is 300 people with sales of...

The following items were selected from among the transactions completed by Davidson Co. during the current year: Feb. 15 Purchased merchandise on account from Ranier Co., $36,000, terms n/30. Mar. 17...

1. What is the current yield offered by the stock, the bond, and the calls and puts? 2. What is the value of the bond in terms of the stock? 3. What is the intrinsic value of each option? 4. What are...

Paul inwested $ 2 5 , 0 0 0 in a nonqualified deferred annuity at the age of 4 7 . Five years later, the contract has grown to $ 3 8 , 0 0 0 , and Paul surrenders his contract for its full value. The...

As the manager of Smith Construction, you need to make a decision on the number of homes to build in a new residential area where you are the only builder. Unfortunately, you must build the homes...