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Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
Edition 1ISBN: 978-0538736787Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
Edition 1ISBN: 978-0538736787 Exercise 7
MULTIPLE-YEAR TREND REPORTS
The controller of Willson Company has computed quality costs as a percentage of sales for the past five years (2007 was the first year the company implemented a quality improvement program). This information is as follows:
Required:
1. Prepare a trend graph for total quality costs. Comment on what the graph has to say about the success of the quality improvement program.
2. Prepare a graph that shows the trend for each quality cost category. What does the graph have to say about the success of the quality improvement program? Does this graph supply more insight than the total cost trend graph does?
3. Prepare a graph that compares the trend in relative quality costs. What does this graph tell you?
The controller of Willson Company has computed quality costs as a percentage of sales for the past five years (2007 was the first year the company implemented a quality improvement program). This information is as follows:
Required:
1. Prepare a trend graph for total quality costs. Comment on what the graph has to say about the success of the quality improvement program.
2. Prepare a graph that shows the trend for each quality cost category. What does the graph have to say about the success of the quality improvement program? Does this graph supply more insight than the total cost trend graph does?
3. Prepare a graph that compares the trend in relative quality costs. What does this graph tell you?
Explanation
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Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
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