Fundamentals of Cost Accounting - 3rd Edition
Not what you're looking for?
In your response, you are to interpret the following graph:
Quality Costs in Millions of Dollars 2007 2008
10
9 External Failure
8 External Failure
7 Internal Failure
6
5 Internal Failure
4 Appraisal
3
2 Appraisal
1 Prevention
0 Preventtion
Demonstrate in your response that you understand the implications of the quality costs identified in the graph. What will a company learn from this graph, and what types of decision-making would that information support?
Purchase this Solution
Solution Summary
Your tutorial is 190 words and explains what each of the four parts of the cost of quality are (in everyday terms) and then explains how to interpret this graph. The response also mentions a cost not on this graph that is important to this interpretation.
Solution Preview
The graph shows that the increase in prevention costs was more than offset by the reduction in external failure costs. In other words, the costs of slowing down the process, adding a bit extra wire, or sharpening the knives more often (or whatever they did to try to prevent errors), ...
Education
- BSc, University of Virginia
- MSc, University of Virginia
- PhD, Georgia State University
Recent Feedback
- "hey just wanted to know if you used 0% for the risk free rate and if you didn't if you could adjust it please and thank you "
- "Thank, this is more clear to me now."
- "Awesome job! "
- "ty"
- "Great Analysis, thank you so much"
Purchase this Solution
Free BrainMass Quizzes
Organizational Leadership Quiz
This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.
Marketing Management Philosophies Quiz
A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.
Academic Reading and Writing: Critical Thinking
Importance of Critical Thinking
Cost Concepts: Analyzing Costs in Managerial Accounting
This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.
Situational Leadership
This quiz will help you better understand Situational Leadership and its theories.