管理会计双语人教版 Chapter 03.pptVIP

This table provides examples of the four quality costs. Most prevention costs occur in the RD stage of the value chain. In contrast, most appraisal and internal failure costs occur in production. External failure occurs in customer service or, worse, it results from lost sales due to an unhappy customer. Prevention is much cheaper than external failure. Lost sales can occur if materials do not arrive on time or if the materials are of poor-quality Strong relations with quality materials’ vendors are essential Some JIT companies have small inventories of critical materials * Also called “Backflush costing” Starts with completed products and then assigns manufacturing costs to units sold and inventory * Traditional Just-in-time Recording production activity Build costs as products move through three inventory accounts Record costs when units are complete Inventory accounts Materials inventory Work in process Finished goods Raw and in-process inventory Finished goods Manufacturing costs Direct materials Direct labor Manufacturing overhead Direct materials Conversion costs (a) Products produced in large batches Traditional (b) Large stocks of finished goods protect against lost sales Traditional (c) Suppliers make frequent deliveries of small quantities of materials JIT (d) Long setup times Traditional (e) Employees do a variety of jobs JIT (f) Machines are grouped into self-contained in production cells JIT (g) Machines are grouped according to function Traditional (h) Suppliers can access the company’s intranet JIT (i) The final operation in the production sequence “pulls” parts from the preceding operation Traditional (k) Management works with suppliers to ensure defect-free materials JIT * Use the four types of quality costs to make decisions * Goals To provide customers with superior products and services Continuous improvement Improve quality Eliminate defects and waste Invest in research development * * * Examples of Quality Costs Prevention Appraisal costs