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In: Accounting

Classify each of the following activities into one of the four cost of quality categories and/or...

Classify each of the following activities into one of the four cost of quality categories and/or identify it as a value-added or a non-value-added activity.

  • Value-added activity
  • Non-value-added
  • Internal failure cost
  • External failure cost
  • Appraisal cost
  • Prevention cost

a. Rework, due to poor materials, on bicycles at Trek

b. Inspection costs incurred by Walmart on merchandise purchased from Mattel, Inc.

c. Costs incurred by Walmart when merchandise, purchased from Grocers, Inc., spoils in its warehouse before shipping to its stores

d. Work in process inventory wait-and-move time between the lathing and finishing stages in a furniture manufacturing facility.

e. Training for line workers on proper operation of equipment.

f. Recording the number of defects produced each month.

g. Offering customer refunds due to defective products.

h. Waste disposal costs at Kimberly-Clark.

Solutions

Expert Solution

  

Particulars Cost of quality Value added/ Non-value added
a. Rework, due to poor materials, on bicycles at Trek Internal Failure costs Non Value added
b. Inspection costs incurred by Walmart on merchandise purchased from Mattel, Inc. Appraisal cost Value added
c. Costs incurred by Walmart when merchandise, purchased from Grocers, Inc., spoils in its warehouse before shipping to its stores Internal Failure costs Non Value added
d. Work in process inventory wait-and-move time between the lathing and finishing stages in a furniture manufacturing facility. Prevention cost Value added
e. Training for line workers on proper operation of equipment. Prevention cost Value added
f. Recording the number of defects produced each month. Internal Failure costs Non Value added
g. Offering customer refunds due to defective products. External failure cost Non Value added
h. Waste disposal costs at Kimberly-Clark. Internal Failure costs Non Value added

ekkarill92 answered 2 years ago
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