Fabrick Companys quality cost report is to be based on the f

Fabrick Company\'s quality cost report is to be based on the following data: 10 $14,900 $70,100 Lost sales due to poor quality Quality data gathering, analysis, and reporting Net cost of spoilage Re-entering data because of keying errors Test and inspection of in-process goods Final product testing and inspection Statistical process control activities Returns arising from quality problems Downtime caused by quality problems $68,300 $27,10e $19,400 $47,6ee $45,600 $37,000 $57,5ee What would be the total prevention cost appearing on the quality cost report? $107100 Prey 10 of 10

Solution

Orevention cost appearing on the quality cost report

Quality data gathering,Analysis and Reporting

statistical process control

=70100+45600=115700

prevention costs are costs which are incurred to avoid or minimize the number of defects at first place .