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Cost Management 6th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins
Edition 6ISBN: 978-0078025532Cost Management 6th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins
Edition 6ISBN: 978-0078025532 Exercise 38
Cost-of-Quality (COQ) Analysis; Nonfinancial Performance Measures The Duncan Materials Company manufactures and sells synthetic coatings that can withstand high temperatures. Its primary customers are aviation manufacturers and maintenance companies. The following table contains financial information pertaining to cost of quality (COQ) in 2013 and 2014 in thousands of dollars:
Required
1. Classify the cost items in the table into cost-of-quality (COQ) categories.
2. Calculate the ratio of each COQ category to revenues in each of the two years.
3. Comment on the results.
4. In addition to the financial measures listed in the table, what nonfinancial measures might Duncan Materials Company monitor in its effort to achieve overall improvements in quality
5. Are financial or nonfinancial quality measures likely of more use to: (a) managers (b) operating personnel Why
Required
1. Classify the cost items in the table into cost-of-quality (COQ) categories.
2. Calculate the ratio of each COQ category to revenues in each of the two years.
3. Comment on the results.
4. In addition to the financial measures listed in the table, what nonfinancial measures might Duncan Materials Company monitor in its effort to achieve overall improvements in quality
5. Are financial or nonfinancial quality measures likely of more use to: (a) managers (b) operating personnel Why
Explanation
Verified
Verified
Non financial performance measures are t...
Cost Management 6th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins
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