Reference no: EM132473115

Point 1: Heartland Fabrication understands that the reason for its success is the repetition of producing quality, dependable products. Last year two areas of weakness were identified in the area of quality: Sheet metal distortion and bolt hole accuracy were the cause of an abnormally high amount of rework and spoilage.

Point 2: One of the production supervisor's main tasks is to determine the cause of both problems and recommend a solution. Part of this process is to evaluate the costs of quality and if additional funds are necessary to get these two areas back in the acceptable range.

Question 1: As the accounting department lead, what are the types of costs you should consider in working with the production supervisor to evaluate the problem?

Question 2: Explain how the four types of quality costs may play a role in this issue for Heartland.

Question 3: What nonfinancial issues are at stake with this issue?

Question 4: Explain the cost/benefit dilemma with regard to correcting this issue if additional funds are deemed necessary.