Dayton Extruded Plastics is a company involved in the injection molding process of plastic extruders. The company had a process of inspection, checking line work and handling returns from customers to identify and correct quality problems. Scrapped extruders were ground into powder and fed back to the extruders as raw material; thus all scrapped extruders were reused at some point. The company's cost accounting system indicated that the cost of scrap was "zero,"
a view also held by Dayton Extruded's management. (Source: "Activity Based management"
by Peter B. Turney published in Management Accounting)
Required:
a) Comment on the view that scrap costs were zero at Dayton Extruded Plastics.
b) Identify internal and external failure activities that were required by Dayton Extruded.
c) Identify prevention and appraisal activities that could have been employed.

Question

Quizplus · Accepted Answer

The Answer of Dayton Extruded Plastics is a company involved in the injection molding process of plastic extruders. The company had a process of inspection, checking line work and handling returns from customers to identify and correct quality problems. Scrapped extruders were ground into powder and fed back to the extruders as raw material; thus all scrapped extruders were reused at some point. The company's cost accounting system indicated that the cost of scrap was "zero,"
a view also held by Dayton Extruded's management. (Source: "Activity Based management"
by Peter B. Turney published in Management Accounting)
Required:
a) Comment on the view that scrap costs were zero at Dayton Extruded Plastics.
b) Identify internal and external failure activities that were required by Dayton Extruded.
c) Identify prevention and appraisal activities that could have been employed.

Dayton Extruded Plastics Is a Company Involved in the Injection