Ask Question
17 July, 02:43

quality control activity analysis indicated the following four activity costs of a hotel. Verifying credit card information $52,200 Customer service training 104,400 Discounting room rates due to poor customer service 156,600 Correcting charges to customer invoices 208,800 Total $522,000. Sales are $6,800,000 for the year. Prepare a cost of quality report.

+4
Answers (1)
  1. 17 July, 03:05
    0
    The total cost of quality is $ 313200

    Explanation:

    First we need to distinguish the costs and allocate them to the correct category for the cost of quality report.

    We have verifying credit card information of $52200

    Customer service training of $104400

    Discounting room rates due to poor service $ 156600

    The 4 categories of cost of quality report are Prevention Costs, Appraisal Costs, Internal Failure costs and external failure costs.

    Conforming Costs

    Customer service training - prevention costs. - $104400 1,53% of total sales

    Verifying credit card information - appraisal cost - $52200 0,76% of total

    Non-conforming costs

    Internal Failure

    External Failure costs

    Discounting room rates due to poor service $ 156600 2,3% of total sales

    Total cost of quality $ 313200 4,6% of total sales
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “quality control activity analysis indicated the following four activity costs of a hotel. Verifying credit card information $52,200 ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers