If NUBD Co. is able to reduce quality costs to 2.5% of sales, what will happen...
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If NUBD Co. is able to reduce quality costs to 2.5% of sales, what will happen to profits? NUBD Co. has the following quality costs for the period: Testing Rework Training Product liability insurance Quality training Customer surveys Reinspection and retesting Warranty repairs Total quality costs Sales for 2021 is P1,000,000. P60,000 27,500 45,000 35.000 43,000 15,000 17,500 50,000 P293.000 If NUBD Co. is able to reduce quality costs to 2.5% of sales, what will happen to profits? NUBD Co. has the following quality costs for the period: Testing Rework Training Product liability insurance Quality training Customer surveys Reinspection and retesting Warranty repairs Total quality costs Sales for 2021 is P1,000,000. P60,000 27,500 45,000 35.000 43,000 15,000 17,500 50,000 P293.000
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SOLUTION To determine the impact of reducing quality costs to 25 of sales on profi... View the full answer
Related Book For
Management Accounting
ISBN: 9781760421144
7th Edition
Authors: Kim Langfield Smith, Helen Thorne, David Alan Smith, Ronald W. Hilton
Posted Date:
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