Solution-Prepare a coq report and classify the cost as

Prepare a coq report and classify the cost as prevention

Reference no: EM13876585

Cost-of-Quality (COQ) Report

Precision Electric Instruments manufacturers fans for mini and micro computers. As a first step to focus on quality improvements, the firm has compiled the following operating data for 2011 (in thousands):

Line inspection	$ 55
Training	120
Returns	100
Warranty repairs	68
Preventive equipment maintenance	20
Recalls	157
Design engineering	67
Scrap (net of salvage value)	30
Downtime	40
Product-testing equipment	88
Product liability insurance	20
Supplier evaluation	15
Rework	35
Inspection and testing of incoming materials	25
Litigation costs to defend allegation of defective products	240

Required: Prepare a cost-of-quality (COQ) report and classify the costs as prevention, appraisal, internal failure, and external failure. Express each category subtotal as a percentage of total COQ.

Reference no: EM13876585

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Prepare a coq report and classify the cost as prevention

Reference no: EM13876585

Reference no: EM13876585

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