Inputs: Total Quality Cost = $5

question 2

Essay

Inputs: Total quality cost = $5.00;target value,T = 0.5.(x - T)= 0.004;(x -T)² = 0.000016;k = total cost/(x - T)² = $312,500.
2.Calculations:

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Definitions:

Allowance Method

An accounting technique used to estimate uncollectible accounts receivable and recognize bad debt expense.

Adjusting Entry

Accounting entries recorded at the conclusion of a financial period for the purpose of assigning revenues and expenses to the time frame in which they were actually incurred.

Accounting Equation

The fundamental equation of double-entry bookkeeping: Assets = Liabilities + Equity.

Note Receivable

A written promise to pay a specified amount of money, with interest, by a certain date.