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LO19-2, LO19-7 EXERCISE 19.13 Classifying Activities Classify each of the following...

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Accounting

LO19-2, LO19-7
EXERCISE 19.13
Classifying Activities
Classify each of the following activities into one of the four cost of quality categories and/or identify it as a value-added or a non-value-added activity.
a. Rework, due to poor materials, on bicycles at Trek.
b. Inspection costs incurred by Walmart on merchandise purchased from Mattel, Inc.
c. Costs incurred by Walmart when merchandise, purchased from Grocers, Inc., spoils in its warehouse before shipping to its stores.
d. Work in process inventory wait-and-move time between the lathing and finishing stages in a furniture manufacturing facility.
e. Training for line workers on proper operation of equipment.
f. Recording the number of defects produced each month.
g. Offering customer refunds due to defective products.
h. Waste disposal costs at Kimberly-Clark.
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