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

question 23

Essay

Galant Company's quality cost report is to be based on the following data:
$\begin{array}{|l|r|}\hline \text { Downtime caused by quality problems } & \$ 11,000 \\\hline \text { Rework labour and overhead } & \$ 32,000 \\\hline \text { Quality circles } & \$ 44,000 \\\hline \text { Returns arising from quality problems } & \$ 97,000 \\\hline \text { Supervision of testing and inspection activities } & \$ 18,000 \\\hline \text { Test and inspection of in-process goods } & \$ 90,000 \\\hline \text { Systems development } & \$ 28,000 \\\hline \text { Amortization of test equipment } & \$ 25,000 \\\hline \text { Warranty repairs and replacements } & \$ 59,000 \\\hline\end{array}$ Answer: Required:
Prepare a quality cost report in good form with separate sections for prevention costs,appraisal costs,internal failure costs,and external failure costs.

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Definitions:

Scope of the Project

The sum of all the project work and objectives to be achieved; this includes tasks, goals, deliverables, and constraints.

Managing Cash Flow

The process of monitoring, analyzing, and optimizing the net amount of cash receipts minus cash expenses.

Company's Money

The financial resources or capital belonging to a corporation, used for operational, investment, and strategic purposes.

Investments

The allocation of resources, such as time, money, or effort, in the expectation of achieving a future return or benefit.