Harvie Company's Quality Cost Report Is to Be Based on the Following

question 191

Essay

Harvie Company's quality cost report is to be based on the following data:

$\begin{array}{ll}\text { Lost sales due to poor quality } & \$ 50,000 \\\text { Quality engineering } & \$ 66,000 \\\text { Test and inspection of incoming materials } & \$ 88,000 \\\text { Re-entering data because of keying errors } & \$ 36,000 \\\text { Net cost of scrap } & \$ 46,000 \\\text { Test and inspection of in-process goods } & \$ 62,000 \\\text { Warranty repairs and replacements } & \$ 32,000 \\\text { Net cost of spoilage } & \$ 89,000 \\\text { Technical support provided to suppliers } & \$ 70,000\end{array}$

Required: Prepare a quality cost report in good form with separate sections for prevention costs,appraisal costs,internal failure costs,and external failure costs.

---

Definitions:

Probable Cause

Reasonable grounds for believing that a search should be conducted or that a person should be arrested.

Arrest Warrant

A legal document issued by a judge or magistrate that authorizes law enforcement to arrest an individual on suspicion of committing a crime.

Crime

An action or omission that constitutes an offense and is punishable by law.

Accesses

The act of approaching or entering a place, or the ability to use, look at, or obtain something.