Zagart's Zambonis Manufactures Zambonis (Ice Rink Machines) In Evaluating Zagart's Zambonis Cost of Quality Report,which Is False

question 3

Multiple Choice

Zagart's Zambonis manufactures Zambonis (ice rink machines) .Its cost of quality data appears below.Total manufacturing cost this year was $4.6 million. $$\begin{array} { l c } & \text { \$in } \\&\quad \quad \text { thousand } & \\ \text { Enginering tests at supplier's factary } & 18 \\\text { Fied tetting new product } &12 \\\text { Irtpection casts } & 42\\\text { Process re-engineering } & 50 \\\text { Product redesipn } & 42 \\\text { Rewark } & 45\\\text { Sales retuns (at cost) } & 105 \\\text { Serap } & 22 \\\text { Traing englayens an new systan } & 6 \\\text { Waranty repairs } &60\\\text { Waste } & 14 \\\text { Tatal } &416\end{array}$$
In evaluating Zagart's Zambonis cost of quality report,which is false?

• A)ZZ is likely not spending enough on training relative to other costs of quality
• B)The external failure costs are likely understated
• C)ZZ is not spending enough on appraisal relative to internal and external failure costs
• D)ZZ is likely to have achieved its optimum quality level
• E)None of the choices are correct

Become adept at assessing short-term creditor perspectives through current position analysis.

Understand the significance and calculation of financial ratios such as days' sales in receivables, inventory turnover, and return on assets.

Appreciate the role of financial ratios in evaluating a company's liquidity, profitability, and solvency.

Recognize how financial ratios can be used for benchmarking against industry averages and evaluating competitive position.

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