Project Description: You have been hired as a Cost Accountant by Sundial, Inc., which produces sunglasses. Your duties i

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Project Description:
You have been hired as a Cost Accountant by Sundial, Inc., which
produces sunglasses. Your duties include developing cost standards
for materials and labor, designing and implementing cost accounting
systems, defining various product and operational costs, analyzing
production costs and recommending changes. When the trial period is
over, you will have a performance review to demonstrate the
completed tasks and gained knowledge.
You have read the Cost of Quality Report of Sundial, Inc. and
discovered that quality costs constitute 4.2% of sales. The amount
is enormous, and your boss asks you to develop a set of measures to
reduce it.
Sundial, Inc.
Cost of Quality Report
For the Year
Cost of Quality
Percent of Sales ($32,000,000)
Prevention costs
$160,000
0.5%
Appraisal costs
$192,000
0.6%
Internal failure costs
$576,000
2.8%
External failure costs
$416,000
1.3%
Total cost of quality
$1,344,000
4.2%
Answer the three questions below: