The following quality cost report came from the records of Vargas Company. Required a. Explain the strategy
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Required
a. Explain the strategy that Vargas 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 customersatisfaction.
Transcribed Image Text:
2014 2013 Amount Percentage Amount Percentage Depreciation on prevention equipment58,000 Incentives and awards Testing equipment (depreciation) Total internal failure External failure cost Warranty repairs and replacement Customer relations Restocking and packaging 4 Total extermal failure
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Related Book For
Fundamental Managerial Accounting Concepts
ISBN: 978-0078025655
7th edition
Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Old
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