Burns Corporation manufactures large kitchen appliances. The following represents financial information for two years:

Required:
(a) Classify these items into costs of prevention (P), appraisal (A), internal failure(
I) or external failure (
E) activities. (b) Calculate the ratio of prevention, appraisal, internal failure and external failure costs to sales for 2007 and 2008. (c) Prepare a cost of quality report for 2007.

Question

Burns Corporation manufactures large kitchen appliances. The following represents financial information for two years:
 
Required:
(a) Classify these items into costs of prevention (P), appraisal (A), internal failure(
I) or external failure (
E) activities. (b) Calculate the ratio of prevention, appraisal, internal failure and external failure costs to sales for 2007 and 2008. (c) Prepare a cost of quality report for 2007.

Quizplus · Accepted Answer

The Answer of Burns Corporation manufactures large kitchen appliances. The following represents financial information for two years:
 
Required:
(a) Classify these items into costs of prevention (P), appraisal (A), internal failure(
I) or external failure (
E) activities. (b) Calculate the ratio of prevention, appraisal, internal failure and external failure costs to sales for 2007 and 2008. (c) Prepare a cost of quality report for 2007.

Burns Corporation Manufactures Large Kitchen Appliances