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Question
Pollenti Company has just merged with another industrial firm whose business had been failing. Pollenti immediately conducted a thorough study of the new company's work processes, and produced a report including the data shown below:
A new inspection process is recommended to minimize defective raw materials. It would cost $12,000 to implement.
Shoddy business practices are resulting in excessive warranty costsue004$15,000 more than normal due mainly to material failure.
Reengineering of the assembly line will increase productivity. It would cost $18,000 to implement.
Inefficient workplace design is costing $5,000 in unnecessary rework costs.
Estimated amount of lost profits due to dissatisfied customers who turn to the competition is $80,000.
Based on an analysis of costs and benefits, a quality improvement plan would not be recommended.
Answer
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Related questions
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At the end of the year, actual data were as follows:
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Which of the following is TRUE of a completed worksheet?
A) The total debits in the trial balance column equal the total debits in the adjusted trial balance column.
B) The total debits in the income statement column equal the dividends paid.
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D) The total debits equal the total credits in each column.
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The current ratio and the debt ratio are shown on the income statement.
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A) report form balance sheet.
B) classified form balance sheet.
C) account form balance sheet.
D) audited form balance sheet.
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B) Current assets
C) Long-term liabilities
D) Current liabilities
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Only temporary accounts appear on the post-closing trial balance.
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Only permanent accounts appear on the post-closing trial balance.
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The post-closing trial balance is an optional step.
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When a business makes a cash payment, the cash account is always debited.
Q:
The accounting process of copying a transaction from the journal to the ledger is called:
A) journalizing.
B) posting.
C) proofing.
D) footing.
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A) chart of accounts.
B) ledger.
C) trial balance.
D) journal.
Answer: B
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Which of the following statements about revenue is CORRECT?
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B) Revenues decrease owner's equity, so a revenue account's normal balance is a debit balance.
C) Revenues increase owner's equity, so a revenue account's normal balance is a debit balance.
D) Revenues increase owner's equity, so a revenue account's normal balance is a credit balance.
Q:
The balance of an account is the:
A) amount remaining in an account.
B) account number, as shown in the chart of accounts.
C) sum of the debits only.
D) sum of the credits only.
Q:
Journalizing a transaction means:
A) calculating the balance in an account.
B) finding the account number in the chart of accounts.
C) recording the transaction, including a brief explanation.
D) copying the information from the journal to the ledger.
Q:
In the accounting system, the first place that transactions are recorded is the ledger.
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For liabilities and revenues, a debit increases the account.