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

question 49

Essay

Godunov Company's quality cost report is to be based on the following data:
$\begin{array}{|l|r|}\hline \text { Downtime caused by quality problem } & \$ 12,000 \\\hline \text { Rework labour and overhead } & \$ 42,000 \\\hline \text { Quality circles } & \$ 34,000 \\\hline \text { Returns arising from quality problems } & \$ 97,000 \\\hline \text { Supervision of testing and inspection activities } & \$ 20,000 \\\hline \text { Test and inspection of in-process goods } & \$ 98,000 \\\hline \text { Systems development } & \$ 38,000 \\\hline \text { Amortization of test equipment } & \$ 24,000 \\\hline \text { Warranty repairs and replacements } & \$ 60,000 \\\hline\end{array}$ 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:

Pre-Start-Up Inspection

A systematic review conducted on machinery or systems before they are started, ensuring safety, compliance, and functionality.

Field Checkout

The process of verifying and testing equipment and systems at the job site to ensure proper operation according to design specifications.

Commissioning

The process of verifying and checking that a new or modified system performs according to its design specifications and requirements before full operation.

I/O Module

A plug-in assembly, containing two or more identical input or output circuits, that contain the connections between a processor and connected devices.