Loring Company had total sales of $2,400,000 for fiscal 20X1. The costs of quality-related activities...
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Loring Company had total sales of $2,400,000 for fiscal 20X1. The costs of quality-related activities are given below.
Discounts due to defects - $100,000
Retesting - $30,000
Vendor certification - $14,000
Rework - $120,000 Marketing research - $6,000
Process acceptance - $14,000
Field testing - $16,000
Product liability - $200,000
Required: 1. Prepare a quality cost report, classifying costs by category and expressing each category as a percentage of sales. What message does the cost report provide?
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