Craig Corp. manufactures radiation-shielding glass panels. (Click the icon to view the information.) Requirements 1. Classify each item as a prevention cost, an appraisal cost, an internal failure cost, or an external failure cost. 2. Should Craig implement the new quality program? Give your reason. Requirement 1. Classify each item as a prevention cost, an appraisal cost, an internal failure cost, or an external failure cost. Type of Quality Cost Cost Strength-testing one item from each batch of panels C Data table Suppose Craig is considering spending the following amounts on a new TQM program: Strength-testing one item from each batch of panels Training employees in TQM Training suppliers in TQM $ 67,000 $ 21,000 $ 38,000 Identifying preferred suppliers that commit to on-time delivery of perfect quality materials....... $ 55,000 Craig expects the new program to save costs through the following: Avoid lost profits from lost sales due to disappointed customers.... $ 94,000 Avoid rework and spoilage .$ 69,000 Avoid inspection of raw materials $ 57,000 Avoid warranty costs $ 22,000 X
Craig Corp. manufactures radiation-shielding glass panels. (Click the icon to view the information.) Requirements 1. Classify each item as a prevention cost, an appraisal cost, an internal failure cost, or an external failure cost. 2. Should Craig implement the new quality program? Give your reason. Requirement 1. Classify each item as a prevention cost, an appraisal cost, an internal failure cost, or an external failure cost. Type of Quality Cost Cost Strength-testing one item from each batch of panels C Data table Suppose Craig is considering spending the following amounts on a new TQM program: Strength-testing one item from each batch of panels Training employees in TQM Training suppliers in TQM $ 67,000 $ 21,000 $ 38,000 Identifying preferred suppliers that commit to on-time delivery of perfect quality materials....... $ 55,000 Craig expects the new program to save costs through the following: Avoid lost profits from lost sales due to disappointed customers.... $ 94,000 Avoid rework and spoilage .$ 69,000 Avoid inspection of raw materials $ 57,000 Avoid warranty costs $ 22,000 X
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter13: Lean Manufacturing And Activity Analysis
Section: Chapter Questions
Problem 2CMA
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