Menu
support@graduatecourseshelp.com
+1(805) 568 7317

classify each of these costs into one of the four categories of quality costs preven 645256

Classifying quality costs and using these costs to make decisions Kane manufactures high quality speakers. Suppose Kane is considering spending the following amounts on a new quality program:

Additional 20 minutes of testing for each speaker

$620,000

Negotiating with and training suppliers to obtain higher quality

 

materials and on time delivery

410,000

Redesigning the speakers to make them easier to manufacture

1,350,000

Kane expects this quality program to save costs, as follows:

Reduce warranty repair costs

$ 225,000

Avoid inspection of raw materials

540,000

Avoid rework because of fewer defective units

800,000

It also expects this program to avoid lost profits from the following:

Lost sales due to disappointed customers

$ 940,000

Lost production time due to rework

278,000

Requirements

1. Classify each of these costs into one of the four categories of quality costs (prevention, appraisal, internal failure, external failure).

2. Should Kane implement the quality program? Give your reasons.

"Order a similar paper and get 15% discount on your first order with us
Use the following coupon
"GET15"

Order Now