Reference no: EM132738808
Thais Company's quality cost report is to be based on the following data:
Liability arising from defective products $65,000
Lost sales due to poor quality $61,000
Test and inspection of in-process goods $57,000
Quality circles $27,000
Net cost of spoilage $103,000
Debugging software errors $39,000
Rework labour and overhead$ 105,000
Final product testing and inspection $42,000
Statistical process control activities $71,000
Problem 1: What will be the total prevention cost appearing on the quality cost report?
Option 1: $84,000
Option 2: $92,000
Option 3: $98,000
Option 4: $113,000
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