This document discusses quality costs and productivity. It begins by outlining the learning objectives which are to identify the four types of quality costs, prepare quality cost reports, explain why quality cost information is needed and how it is used, and explain productivity and calculate the impact of changes. It then provides examples to meet each learning objective, such as defining the four types of quality costs, showing examples of quality cost reports, and using quality cost information for strategic pricing and new product analysis. It also provides examples of calculating partial productivity measures and their advantages and disadvantages.
Akuntansi Manajemen Edisi 8 oleh Hansen & Mowen Bab 2Dwi Wahyu
Materi Bab 2 Basic Management Accounting Concepts, Akuntansi Manajemen buku Hansen & Mowen Edisi 8. Presentasi powerpoint oleh Gail B. Wright, Professor Emeritus of Accounting, Bryant University
Business Ethic Chap 9: Business Environmental SustainabilityShandy Aditya
Berdasarkan buku Hartman, L. P., DesJardins, J., & Macdonald, C. (2014). Business Ethic Decision Making for Personal Integrity & Social Responsibility. United State of America: McGraw Hill Education.
kali ini kita akan membahas chapter 9: Business Environmental Sustainability
Video Presentation Link:
https://youtu.be/SUQyd8J4hWE
Akuntansi Manajemen Edisi 8 oleh Hansen & Mowen Bab 2Dwi Wahyu
Materi Bab 2 Basic Management Accounting Concepts, Akuntansi Manajemen buku Hansen & Mowen Edisi 8. Presentasi powerpoint oleh Gail B. Wright, Professor Emeritus of Accounting, Bryant University
Business Ethic Chap 9: Business Environmental SustainabilityShandy Aditya
Berdasarkan buku Hartman, L. P., DesJardins, J., & Macdonald, C. (2014). Business Ethic Decision Making for Personal Integrity & Social Responsibility. United State of America: McGraw Hill Education.
kali ini kita akan membahas chapter 9: Business Environmental Sustainability
Video Presentation Link:
https://youtu.be/SUQyd8J4hWE
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Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Resume
• Real GDP growth slowed down due to problems with access to electricity caused by the destruction of manoeuvrable electricity generation by Russian drones and missiles.
• Exports and imports continued growing due to better logistics through the Ukrainian sea corridor and road. Polish farmers and drivers stopped blocking borders at the end of April.
• In April, both the Tax and Customs Services over-executed the revenue plan. Moreover, the NBU transferred twice the planned profit to the budget.
• The European side approved the Ukraine Plan, which the government adopted to determine indicators for the Ukraine Facility. That approval will allow Ukraine to receive a EUR 1.9 bn loan from the EU in May. At the same time, the EU provided Ukraine with a EUR 1.5 bn loan in April, as the government fulfilled five indicators under the Ukraine Plan.
• The USA has finally approved an aid package for Ukraine, which includes USD 7.8 bn of budget support; however, the conditions and timing of the assistance are still unknown.
• As in March, annual consumer inflation amounted to 3.2% yoy in April.
• At the April monetary policy meeting, the NBU again reduced the key policy rate from 14.5% to 13.5% per annum.
• Over the past four weeks, the hryvnia exchange rate has stabilized in the UAH 39-40 per USD range.
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
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how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
NO1 Uk Black Magic Specialist Expert In Sahiwal, Okara, Hafizabad, Mandi Bah...Amil Baba Dawood bangali
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Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
3. 3
1. Identify & describe the 4 types of quality
costs.
2. Prepare a quality cost report; differentiate
between acceptable quality level & total
quality control.
3. Tell why quality cost information is needed &
show how it is used.
4. Explain what productivity is; calculate the
impact of productivity changes on profits.
LEARNING OBJECTIVESLEARNING OBJECTIVES
Click the button to skip
Questions to Think About
4. 4
QUESTIONS TO THINK ABOUT:
Ladd Lighting Corporation
Why has the measurement of
productivity & quality become
so important?
9. 9
QUALITY
Russell Walsh of Ladd Lighting recognizes
that quality improvement can increase
profitability by:
Increasing customer demand
Decreasing costs
LO 1
10. 10
WEIGHING COSTS & BENEFITS
Managers need to know what quality costs
are & how they change over time
Costs of quality
Studies suggest that cost of quality production
might be as much as 20% – 30% of sales
Benefits of quality
Competitive dimension
LO 1
12. 12
DIMENSIONS OF QUALITY: 1
Performance: how consistently a product
functions
Aesthetics: appearance of tangible products,
facilities, communication materials
Serviceability: ease of maintaining, repairing
product
Features of quality design: characteristics that
differentiate between similar products
LO 1
Continued
13. 13
DIMENSIONS OF QUALITY: 2
Reliability: probability that product, service
will perform intended function for specified
length of time
Durability: length of time a product functions
Quality of conformance: measure of how a
product meets its specifications
Fitness for use: suitability of product for
advertised functions
LO 1
15. 15
What are costs of quality?
Costs that exist because poor
quality does or may exist:
• Control activities to prevent,
detect poor quality.
• Failure activities are responses to
poor quality.
LO 1
16. 16
CATEGORIES OF QUALITY
COSTS
1. Prevention costs: incurred to prevent poor quality
2. Appraisal costs: incurred to determine whether
products, services conform to requirements,
customer needs
3. Internal failure costs: incurred when non-
conformance discovered & product, service re-
worked, scrapped, etc.
4. External failure costs: incurred when products fail
to conform after delivery and recalled
LO 1
17. 17
CLASSIFYING QUALITY COSTS
Observable
Costs available in accounting records
Hidden
Significant
Not directly available in accounting records
Estimated
Multiplier method
Market research
Taguchi quality loss function
LO 1
18. 18
FORMULA: Multiplier Method
Multiplier method estimates quality costs as
some multiple of measured failure costs.
LO 1
Total external failure cost:
= k (Measured external failure costs)
19. 19
How does market research
estimate hidden quality
costs?
Market research uses customer
surveys & interviews of sales
staff to project future profit
losses.
LO 1
21. 21
What assumption does the
Taguchi quality loss
function make?
Taguchi quality loss function
assumes that variations from
target value of quality
characteristic causes hidden
quality costs regardless of
specification limits.
LO 1
22. 22
TAGUCHI QUALITY LOSS
FUNCTION
LO 1
EXHIBITEXHIBIT15-115-1
Quality cost increases
symmetrically at an
increasing rate even
within specification
limits.
23. 23
FORMULA: Taguchi Function
Taguchi quality loss function estimates hidden
costs of poor quality.
LO 1
[Quality loss * Actual value of quality
characteristic] L(y)
= a proportional constant multiplier of
external cost failure structure * (difference
between actual and target value squared)
L(y) = k(y-T)2
24. 24
How do we estimate the
organization’s external
failure cost structure, k?
k is estimated as c/d2
where:
c =loss at lower or upper specification
limit
d = distance of limit from target value
LO 1
25. 25
2
Prepare a quality cost
report; differentiate
between acceptable
quality level & total
quality control.
LEARNING OBJECTIVELEARNING OBJECTIVE
26. 26
QUALITY COST REPORT
Provides insights to companies serious
about quality:
Reveals magnitude of quality costs by
category
Allows managers to assess financial impact
of quality costs in each category
Shows distribution of quality costs by
category
Allows managers to assess relative
importance of each category
LO 2
29. 29
ACCEPTABLE QUALITY
LEVEL (AQL): Definition
ACCEPTABLE QUALITY
LEVEL (AQL): Definition
Is the optimal balance
between control costs &
failure costs.
LO 2
30. 30
Is there a problem with the
ACL (traditional) view of
quality?
AQL encouraged lower quality
levels by accepting production
of a given number of defective
units.
LO 2
31. 31
AQL QUALITY COST GRAPH
LO 2
EXHIBITEXHIBIT 15-515-5
Accepted level
of quality
Quality foregone;
failure accepted
33. 33
Is there a problem with the
zero defects model?
Zero defects model understates
quality costs & the potential for
savings from efforts to improve
quality.
LO 2
34. 34
AQL QUALITY COST GRAPH
LO 2
EXHIBITEXHIBIT 15-615-6
Control costs
decrease as
percentage of defects
decreases.
35. 35
REDUCING QUALITY COSTS
Take direct attack on failure costs to drive
them to zero
Invest in “right” prevention activities to bring
about improvement
Reduce appraisal costs according to results
achieved
Continuously evaluate, redirect prevention
efforts to gain further improvement
LO 2
36. 36
What is the strategy for
reducing costs based on?
The strategy is based on the premise
that a) there is a root cause for each
failure, b) causes are preventable,
and c) prevention is always cheaper.
LO 2
37. 37
ABM & OPTIMAL QUALITY
COSTS
ABM classifies costs as value-added &
non-value-added and recommends
non-value-added costs be eliminated.
Value-added quality costs
Prevention activities, when performed
efficiently
Non-value-added quality costs
Appraisal costs
Failure costs (both internal & external)
LO 2
41. 41
TQC COMPONENT GRAPH
LO 2
EXHIBITEXHIBIT 15-815-8
Over time, quality
costs shift from non-
value-added to value-
added (prevention)
costs.
42. 42
3
Tell why quality cost
information is needed
& show how it is
used.
LEARNING OBJECTIVELEARNING OBJECTIVE
43. 43
What are principal
objectives of reporting
quality costs?
Principal objectives are to
improve & facilitate a)
managerial planning, b) control,
and c) decision making.
LO 3
44. 44
STRATEGIC PRICING: BackgroundSTRATEGIC PRICING: Background
Market data for low priced electronic
measurement instruments shows market
share has dropped. Japanese firms
continue to pressure the product line.
Leola Wise is preparing a brief to support
a significant ($3) price decrease to hold or
recapture market share. Quality cost
estimates follow.
Market data for low priced electronic
measurement instruments shows market
share has dropped. Japanese firms
continue to pressure the product line.
Leola Wise is preparing a brief to support
a significant ($3) price decrease to hold or
recapture market share. Quality cost
estimates follow.
LO 3
Continued
45. 45
QUALITY COSTS: BackgroundQUALITY COSTS: Background
LO 3
Inspection of raw materials $ 200,000
Scrap 800,000
Rejects 500,000
Rework 400,000
Product inspection 300,000
Warranty work 1,000,000
Total estimate $ 3,200,000
46. 46
ELECTRONIC INSTRUMENTS:
Price Reduction Analysis
ELECTRONIC INSTRUMENTS:
Price Reduction Analysis
LO 3
The price reduction can be achieved by a
combination of implementing a total
quality control position, working to
reduce the cost of lower level
instruments, while redesigning the
production process.
The price reduction can be achieved by a
combination of implementing a total
quality control position, working to
reduce the cost of lower level
instruments, while redesigning the
production process.
47. 47
NEW PRODUCT ANALYSIS:
Background
NEW PRODUCT ANALYSIS:
Background
A marketing manager and design engineer
developed a proposal for a new product.
They were surprised when approval was
not forthcoming because the product did
not meet the company-required 18%
return on sales. They received a report
from the controller’s office with the
following life-cycle profit estimates.
A marketing manager and design engineer
developed a proposal for a new product.
They were surprised when approval was
not forthcoming because the product did
not meet the company-required 18%
return on sales. They received a report
from the controller’s office with the
following life-cycle profit estimates.
LO 3
Continued
48. 48
PROJECTED LIFE-CYCLE
INCOME STATEMENT: Background
PROJECTED LIFE-CYCLE
INCOME STATEMENT: Background
LO 3
Sales (50,000 * $60) $ 3,000,000
Cost of inputs:
Materials 800,000
Labor 400,000
Scrap 150,000
Inspection 350,000
Repair work 200,000
Product development 500,000
Selling 300,000
Life-cycle income $ 300,000
49. 49
NEW PRODUCT: Life-Cycle Profit
Analysis
NEW PRODUCT: Life-Cycle Profit
Analysis
LO 3
A new product design would eliminate scrap
and rework, leading to cost savings. Cost
reductions included $150,000 for scrap,
$200,000 for scrap, and eliminating 1
inspector at $50,000. The new analysis
suggests that the return on sales would
be 30% and the new product should be
accepted.
A new product design would eliminate scrap
and rework, leading to cost savings. Cost
reductions included $150,000 for scrap,
$200,000 for scrap, and eliminating 1
inspector at $50,000. The new analysis
suggests that the return on sales would
be 30% and the new product should be
accepted.
Continued
50. 50
PROJECTED LIFE-CYCLE
INCOME STATEMENT: Analysis
PROJECTED LIFE-CYCLE
INCOME STATEMENT: Analysis
LO 3
Sales (50,000 * $60) $ 3,000,000
Cost of inputs:
Materials 800,000
Labor 400,000
Scrap 0
Inspection 300,000
Repair work 0
Product development 500,000
Selling 300,000
Life-cycle income $ 650,000
52. 52
TOTAL PRODUCTIVE
EFFICIENCY
When concerned with productive efficiency,
2 conditions must be satisfied:
Technical efficiency: For any mix of inputs
that will produce a given output, no more of
any 1 input is used than necessary to produce
the output
Input trade-off efficiency: Given the mixes
that satisfy the first condition, the least
costly mix is chosen.
LO 4
56. 56
INPUT TRADE-OFF EFFICIENCY
LO 4
EXHIBITEXHIBIT 15-1015-10
Managers must
weigh the trade-off
between labor &
capital for efficiency
of output.
57. 57
PRODUCT DATA: BackgroundPRODUCT DATA: Background
LO 4
2007 2008
# Chandeliers produced 120,000 150,000
Labor hours used 40,000 37,500
Materials used (lbs.) 1,200,000 1,428,571
58. 58
FORMULA: Partial Productivity
Measurement
Partial productivity measurement is a
quantitative assessment of productivity changes.
LO 4
Productivity ratio = Output / Input
Operational productivity = 120,000 / 40,000
= 3 chandeliers per hour
Financial productivity = $6,000,000 / 480,000
= $12.50 in revenue per #1 labor cost
59. 59
ADVANTAGES &
DISADVANTAGES: Partial Measures
Advantages
Managers can focus on a particular input
Easily interpreted
Feedback for operational personnel
Disadvantages
In isolation, can be misleading
Partial measures are not suitable for trade-offs
LO 4
60. 60
PARTIAL MEASURES: AnalysisPARTIAL MEASURES: Analysis
LO 4
Conclusions that can be drawn about partial
measures:
Existence of trade-offs mandates total
measure of productivity for assessing merits
of productivity decisions
Because of possibility of trade-offs,
financial productivity must be measured
Conclusions that can be drawn about partial
measures:
Existence of trade-offs mandates total
measure of productivity for assessing merits
of productivity decisions
Because of possibility of trade-offs,
financial productivity must be measured
68. 68
FORMULA: Profit Recovery
Profit recovery is the change in revenue minus a
change in the cost of inputs .
LO 4
Profit recovery
= Profit change – Profit linked productivity change
= ($1,510,000 – $450,000)
= $1,060,000