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

question 19

Essay

Gabris Company's quality cost report is to be based on the following data:
Required:
Prepare a Quality Cost Report in good form with separate sections for prevention costs,appraisal costs,internal failure costs,and external failure costs.
$\begin{array}{llcc} \text { Liability arising from defective products.............. } &\$83,000\\ \text {Lost sales due to poor quality .............................. } &\$89,000\\ \text { Supervision of testing and inspection activities.... } &\$10,000\\ \text { Statistical process control activities.................... } &\$83,000\\ \text { Quality training................................................. } &\$65,000\\ \text { Test and inspection of in-process goods............. } &27,000\\ \text { Rework labor and overhead............................... } &79,000\\ \text { Re-entering data because of keying errors..........} &\$18,000\\ \text {Test and inspection of incoming materials.......... } &\$70,000\\\end{array}$

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Definitions:

Emotional Reactions

The spontaneous and subjective experience of feelings in response to stimuli, which can influence thoughts and behavior.

Two-Factor Theory

A psychological theory proposing that emotional experiences arise from a combination of a state of physiological arousal and a cognitive interpretation of that arousal.

Stanley Schachter

A psychologist known for his work on social and emotion theories, particularly the two-factor theory of emotion.

Jerome Singer

An American psychologist known for his research on daydreaming, imagination, and the psychology of the arts.