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The expected sales for Johnson Company is $50 million for the current year. A quality improvement program is recently implemente by the management....

Q3 Accountancy.png


Requirements:

 

A. Calculate total prevention costs

 

B. Calculate total appraisal costs

 

C. Calculate total internal failure costs

 

D. Calculate total external failure costs

Q3 Accountancy.png

The expected sales for Johnson Company is $50 million for the current year. A quality
improvement program is recently implementeé by the management. Following data is
accumulated alter several months: Warmty daims S 50.000
Hawk costs 200,000 Mm 305,000
lmctim of imnmhg maids $10.0!!!
Statistics process control “.000
Saapeosls 100,000
Product quality awaits 250.0(1) Requirements: A. Calculate total prevention costs B. Calculate total appraisal costs C. Calculate total internal failure costs D. Calculate total external failure costs

Top Answer

A .  Prevention costs refer to the costs which are incurred in order to avoid quality problems. They are associated with... View the full answer

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