EssayWritingTeam Logo_Best Essay Writers_2022

 The annual report issued by Leonard Software Inc. includes several expenditure items, listed in the table below.

The annual report issued by Leonard Software Inc. includes several expenditure

items, listed in the table below.

Indicate the subclass of cost of software quality to which each of the following

expenditures belongs: PC =prevention costs, AC =appraisal costs, IFC =internal

failure costs, EFC = external failure costs, MPC = management prevention costs,

MAC= management appraisal costs, IMFC= internal management failure costs, and

EMFC =external management failure costs. In cases where an expenditure item is

not a software quality cost, mark “X” in the “nonsoftware quality cost” column.

_________ _________

_________ _________

_________ _________

_________ _________

_________ _________

_________ _________

_________ _________

_________ _________

_________ _________

_________ _________

_________ _________

_________ _________

_________ _________

Leonard Software Inc.: expenditure

Subclass Nonsoftware

of software quality cost

No. Expenditure item quality cost

1 Working hours spent installing software at

customer’s site in Singapore

2 Waiving of customer’s debt as agreed to in

compromise following software failures

detected in the installed software

3 Payment for Dr. Jacobs’s participation in a

design review

4 Payments made to “King SQA Consultants”

for preparing the new version of the software

quality procedures

5 Repair of a color printer

6 Working hours spent participating in monthly

meetings of the Coordination and Control

Committee headed by the Department


7 Travel to Switzerland to examine advanced

software testing system proposed to company

8 Purchase of barcode sticker software package

to be integrated in the inventory management

software system.

9 Working hours spent correcting errors listed in

a design review report.

10 Customer’s compensation for delay in schedule

resulting from the company’s inability to

recruit sufficient professional manpower for

the development team.

11 Working hours spent by the Chief Software

Engineer and Martin Fountain, Senior Project

Manager, in examining the schedule estimates

for the “Top Assets” tender.

12 Working hours spent in preparation of an

updated version of Leonard Software’s

C Programming Instructions.

13 Working hours spent by programmer (John) in

correcting program bugs detected by his team

leader in their weekly meeting.

186 Chapter 9 Cost of Software Quality

9.5 The company’s last year’s annual CoSQ were as follows:

Cost of software Previous year’s annual

quality class costs in thousands $

Development and SQA Prevention costs $1,238

activities quality costs Appraisal costs $3,450

Internal failure costs $4,238

External failure costs $2,890

Management quality costs Management $225

prevention costs

Management $127

appraisal costs

Internal management $1,840

failure costs

External $4,650


failure costs

Development costs $12,876

(design and coding)

The software quality assurance manager has proposed a dramatic change in Leonard Software’s software quality expenditures policy. It is expected to reduce failure

costs by the following significant percentages: internal failure costs – 10%, external

failure costs – 25%, and managerial internal and external failure costs – at least 25%.

The SQA manager’s proposal involves increasing expenditures as follows: prevention costs $400,000, appraisal costs $700,000, managerial prevention costs

$580,000, and management appraisal costs $220,000.

Management commented about the proposed extravagant expenditures required

for the proposed SQA progress project. Management requested that you evaluate the

SQA manager’s proposal.

a. Examine the proposal and calculate its results from a financial aspect.

b. Explain in your own words, how this dramatic program’s additional funds should

be utilized in order to bring about the expected reduction in failure costs.

c. Can you list any hidden costs of failure that have not been mentioned in the program,

but which are expected to be reduced as a result of implementing the proposal?

d. Assuming the scope of development activities for next year will be similar to that

of last year, will the proposed project reduce the percentage of CoSQ in the total

costs of software products? Present your calculations.

A Custom Writing Service Company

Professional essay writers that delivers plagiairism-free academic papers on time

Latest Articles

Do you want a uniquely written paper on the same topic? Hire an expert writer now.