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

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Essay

Falstaff Company's quality cost report is to be based on the following data:
 Quality data gathering, analysis, and reporting $49,000 Supervision of testing and inspection activities $46,000 Liability arising from defective products $35,000 Technical support provided to suppliers $50,000 Disposal of defective products $75,000 Amortization of test equipment $56,000 Downtime caused by quality problems $99,000 Test and inspection of in-process goods $70,000 Cost of field servicing and handling complaints $54,000\begin{array}{|l|r|}\hline \text { Quality data gathering, analysis, and reporting } & \$ 49,000 \\\hline \text { Supervision of testing and inspection activities } & \$ 46,000 \\\hline \text { Liability arising from defective products } & \$ 35,000 \\\hline \text { Technical support provided to suppliers } & \$ 50,000 \\\hline \text { Disposal of defective products } & \$ 75,000 \\\hline \text { Amortization of test equipment } & \$ 56,000 \\\hline \text { Downtime caused by quality problems } & \$ 99,000 \\\hline \text { Test and inspection of in-process goods } & \$ 70,000 \\\hline \text { Cost of field servicing and handling complaints } & \$ 54,000 \\\hline\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.

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Definitions:

Philanthropy

The act of donating money, goods, services, or time to support a charitable cause or contribute to the welfare of others.

Employment Act of 1967

U.S. legislation aimed at promoting maximum employment, production, and purchasing power, often associated with measures to combat unemployment and inflation.

Corporate Philanthropy

Effort of an organization to make a contribution to the communities in which it earns profits.

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