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Wilson's Language School Manufactures CDs and DVDs to Teach English

question 85

Essay

Wilson's Language School manufactures CDs and DVDs to teach English as a Second Language. Wilson has just prepared a Cost of Quality Report, and the staff has noticed a decline in prevention costs as a percentage of total sales over a three-year period. What changes might Wilson expect to see in appraisal costs as a percentage of sales, internal failure costs as a percentage of sales, and external failure costs as a percentage of sales given this trend?


Definitions:

Inventory Records

Documents that track the quantity, value, and movement of products or materials a company holds in stock.

FOB Shipping Point

A shipping term indicating that the buyer assumes all risk and pays for shipping costs from the point of departure; ownership of goods transfers to the buyer when the carrier picks up the items.

FOB Destination

is a shipping term indicating the seller bears delivery risk and costs until the goods reach the buyer's location, at which point the buyer takes over.

Title

A legal term referring to the formal right of ownership of property, assets, or a company.

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