Holbrook Corporation is a manufacturer of electronic stereo equipment. The following represents financial information for the year 2008:

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 the year 2008. (c) Prepare a cost of quality report for the year 2008.

Question

Holbrook Corporation is a manufacturer of electronic stereo equipment. The following represents financial information for the year 2008:
 
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 the year 2008. (c) Prepare a cost of quality report for the year 2008.

Quizplus · Accepted Answer

The Answer of Holbrook Corporation is a manufacturer of electronic stereo equipment. The following represents financial information for the year 2008:
 
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 the year 2008. (c) Prepare a cost of quality report for the year 2008.

Holbrook Corporation Is a Manufacturer of Electronic Stereo Equipment