LO19-2, LO19-7 EXERCISE 19.13 Classifying Activities Classify each of the following...
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Accounting
LO LO
EXERCISE
Classifying Activities
Classify each of the following activities into one of the four cost of quality categories andor identify it as a valueadded or a nonvalueadded 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 waitandmove 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 KimberlyClark.
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