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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 the above, what is the amount of external failure costs, if any, included here?
A) $5,000
B) $12,000
C) $95,000
D) Zero
Answer
This answer is hidden. It contains 81 characters.
Related questions
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Aug
Sep Cash collections
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$40,000
$48,000 Cash payments: Purchases of inventory
31,000
22,000
18,000 Operating expenses
12,000
9,000
11,600 Capital expenditures
0
19,000
0 The cash balance at June 30 is projected to be $5,600. There are no financing transactions planned in the 3rd quarter. What is the projected cash balance at the end of September?
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C) $18,000
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Jun Cash collections
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Bartholomew Manufacturing Company is preparing the operating budget for the first quarter of 2012. They forecast sales of $50,000 in January, $60,000 in February, and $70,000 in March. Cost of goods sold is budgeted at 40% of Sales. Variable and fixed expenses are as follows:
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B) Cost of goods sold
C) Sales discounts and Sales returns and allowances
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In a multi-step income statement, Interest revenue and expense are NOT included in Operating income.
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Which of the following is TRUE of a completed worksheet?
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B) The total debits in the income statement column equal the dividends paid.
C) The total debits in the income statement column equal the total debits in the balance sheet column.
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B) long-term assets.
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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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D) $20,000
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The accounting process of copying a transaction from the journal to the ledger is called:
A) journalizing.
B) posting.
C) proofing.
D) footing.
Q:
A) chart of accounts.
B) ledger.
C) trial balance.
D) journal.
Answer: B
Q:
Which of the following statements about revenue is CORRECT?
A) Revenues decrease owner's equity, so a revenue account's normal balance is a credit balance.
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.
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B) account number, as shown in the chart of accounts.
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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.
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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.
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At the end of the year, actual data were as follows:
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Actual variable overhead costs: $174,300
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A) $6,300 Favorable
B) $6,300 Unfavorable
C) $12,000 Favorable
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