The following sales and quality-related data pertain to April for Direction Company:

a.Prepare an analysis of the costs of quality of the three divisions.Categorize the costs as follows: costs of conformance with subsets of prevention costs and appraisal costs,and costs of nonconformance with subsets of internal failure costs and external failure costs.Compute the total costs for each category for each division.
b.Compute the percentage of sales of each cost-of-quality total for each division.Round percentages to two places beyond the decimal point.
c.Interpret the cost-of-quality data for each division.Is each division's product of high or low quality? Why? Are the divisions headed in the right direction to be globally competitive?
d.Evaluate the nonfinancial measures of quality in terms of customer satisfaction.Explain your answer.

Question

The following sales and quality-related data pertain to April for Direction Company:

a.Prepare an analysis of the costs of quality of the three divisions.Categorize the costs as follows: costs of conformance with subsets of prevention costs and appraisal costs,and costs of nonconformance with subsets of internal failure costs and external failure costs.Compute the total costs for each category for each division.
b.Compute the percentage of sales of each cost-of-quality total for each division.Round percentages to two places beyond the decimal point.
c.Interpret the cost-of-quality data for each division.Is each division's product of high or low quality? Why? Are the divisions headed in the right direction to be globally competitive?
d.Evaluate the nonfinancial measures of quality in terms of customer satisfaction.Explain your answer.

Quizplus · Accepted Answer

The Answer of The following sales and quality-related data pertain to April for Direction Company:

a.Prepare an analysis of the costs of quality of the three divisions.Categorize the costs as follows: costs of conformance with subsets of prevention costs and appraisal costs,and costs of nonconformance with subsets of internal failure costs and external failure costs.Compute the total costs for each category for each division.
b.Compute the percentage of sales of each cost-of-quality total for each division.Round percentages to two places beyond the decimal point.
c.Interpret the cost-of-quality data for each division.Is each division's product of high or low quality? Why? Are the divisions headed in the right direction to be globally competitive?
d.Evaluate the nonfinancial measures of quality in terms of customer satisfaction.Explain your answer.

The Following Sales and Quality-Related Data Pertain to April for Direction