Three Rivers Inc. provides cable TV and Internet service to the local community. The activities and activity costs of Th

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Three Rivers Inc. provides cable TV and Internet service to thelocal community. The activities and activity costs of Three Riversare identified as follows:
Question Content Area
a. Identify the cost of qualityclassification for each activity and whether the activity isvalue-added or non-value-added.
AppraisalExternal failureInternal failurePreventionExternalfailure
Non-value-addedValue-addedNon-value-added
AppraisalExternal failureInternal failurePreventionAppraisal
Non-value-addedValue-addedValue-added
AppraisalExternal failureInternal failurePreventionExternalfailure
Non-value-addedValue-addedNon-value-added
AppraisalExternal failureInternal failurePreventionInternalfailure
Non-value-addedValue-addedNon-value-added
AppraisalExternal failureInternal failurePreventionExternalfailure
Non-value-addedValue-addedNon-value-added
AppraisalExternal failureInternalfailurePreventionPrevention
Non-value-addedValue-addedValue-added
AppraisalExternal failureInternalfailurePreventionPrevention
Non-value-addedValue-addedValue-added
AppraisalExternal failureInternal failurePreventionExternalfailure
Non-value-addedValue-addedNon-value-added
AppraisalExternal failureInternalfailurePreventionPrevention
Non-value-addedValue-addedValue-added
Question Content Area
b. Prepare a cost of quality report.Assume that sales are $2,800,000. If required, round percentages toone decimal place.
Question Content Area
c. Prepare a value-added/non-value-addedanalysis.
Question Content Area
d. What percentage of total costs ofquality are considered to be value-added?
46.0%15.0%61.0%None of these options are correct.