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In 19x9, Allison Foods Company instituted a quality improvement program. At the end of 19x9, the management of the corporation requested a report to show the amount saved by the measures taken during the year. The actual sales and (actual quality costs for 19x8 and 19x9 were:
19x8
19x9
Sales
$500,000
$600,000
Scrap
15,000
Rework
20,000
10,000
Training program
5,000
6,000
Consumer complaints
Lost sales, incorrect labeling
8,000
----
Test labor
12,000
Inspection labor
25,000
24,000
Supplier evaluation
13,000
Prepare the one-year trend report that corporate management requested. How much did profits increase because of quality improvements made in 19x9 (assuming that all reductions in quality costs are attributable to quality improvements)?
Describe the specific objectives of financial reporting, explain the relationship between the objectives of financial reporting and explain the Financial Accounting Standards Board (FASB) conceptual framework.
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