Gavin Company has asked its management accountant to prepare a cost of quality report.Management is concerned that quality costs are too high relative to the company's sales.Sales in Year 1 totaled $400,000,while sales in Year 2 were $500,000.
Required:
1)Prepare a Quality Cost Report for Gavin Company showing its quality costs as a percentage of sales.Organize the costs by type (prevention,appraisal,internal failure,and external failure)and include percentages for each individual cost as well as for the total of each category.Round your answers to three decimal places.The report has been started below:
2)Evaluate Gavin Company's strategy for reducing its total costs of quality.
Definitions:
Peripheral Nerve
Nerves located outside of the brain and spinal cord, responsible for transmitting information between the central nervous system and the rest of the body.
Stimuli
External factors or events that provoke a response in biological organisms, essential for behavior and learning.
Receptors
Special structures or cells in the body that receive and process signals from stimuli or drugs, often triggering a biological response.
Environment
Surroundings.
Q6: Hough Company manufactures a wide variety of
Q21: Stuart's Electronics is a relatively small company
Q64: What is a primary disadvantage of the
Q75: An increase in prevention costs will often
Q82: Wayne Company wishes to allocate overhead costs
Q84: Bonnie's Bakery is a relatively small company
Q112: The process of dividing a total cost
Q134: Bright Minds Toy Company prepared the
Q135: Custom Quilters makes decorative comforters,quilted garments,and other
Q143: Select the term from the list provided