CIS Company Has the Following Information Available Required:
Prepare the Quality Cost Report for CIS Company

question 84

Essay

CIS Company has the following information available:
$\begin{array} { l } \text {Quality engineering of products }&\$20,000 \\ \text {Technical support provided by CIS to suppliers }&\$2,000 \\ \text {Cost of field servicing }&\$80,000 \\ \text {Supervision of testing activities }&\$30,000 \\ \text {Net cost of spoilage }&\$55,000 \\ \text {Depreciation of testing equipment }&\$4,500 \\ \text {Plant utilities in inspection area }&\$100,000 \\ \text {Retesting of reworked products }&\$200,000 \\ \text {Lost sales arising from a reputation for poor quality products }&\$ 1,000,000\\ \text { Reinspection of reworked products}&\$ 44,000\\ \text {Warranty replacements }&\$3,000 \\ \text {Returns and allowances given to customers due to quality issues }&\$5,500 \\ \text {Rework laborand overhead }&\$70,000 \\\end{array}$

Required:
Prepare the quality cost report for CIS Company.

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Definitions:

Earned-Income Tax Credit

A returnable tax credit aimed at individuals and families with low to moderate income who work, especially those who have children.

Wage Subsidy

A financial incentive given by governments to employers to encourage the hiring of certain individuals, often used to reduce unemployment in disadvantaged groups.

Social Security Taxes

Taxes imposed by governments to fund social security programs, typically deducted from employees' paychecks and matched by employers.

Occupational Choices

The decisions individuals make regarding their employment, including type of job, industry, and professional career path.