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Time $0\mathrm{.}4953$

The following information shows the quality conformance and non$-$conformance costs extracted trom the cost of qualify report prepared by the management accountant at a leading South Alrican manufacturing company for the year ended $31$ July $2024.$ During this peciod, the company

$1$

Nolyent athered

Mand oncortign

Finupasion. reported sales of R$240$ million.

$\backslash$table$[[$INFORMATION$,\backslash$table$[[$R$],[864000]]],[4970000],[$II$,,1048000],[,\backslash$table$[[$retesting$],[$Inspection of materials received$]],680000],[,,],[$IV$,\backslash$table$[[$Supplier reviews$],[$Handling customer complaints and warranty$]],5616000],[$V$,$repairs,$7800000],[$V$1,\backslash$table$[[$Scrap and reworks.$],[$Preventive maintenance.$]],776000],[$VII$,$Inspection of work in progress and completed,$1040000],[$VIII$,,9280000],[,\backslash$table$[[$units$],[$Foregone contribution from lost sales$]],888000],[$IX$,$Quality audits and testing equipment.,$9240000],[$X$,$Peturns and recalls,report for$]]$

Based on the management accountant's cost of quality report for the year ended $31$ July $2024,$ which of the following represeats the

XI

on

$717$

Mostly cieudy

$\backslash$table$[[$IX$,$Foregone contribution from lost sales,$9280000],[$X$,$Quality audits and testing equipment,$888000],[$XI$,$Returns and recalls,$9240000]]$

Based on the management accountant's cost of quality report for the year ended $31$ July $2024,$ which of the following represents the most pertinent recommendation to the management of the company going forward?

A$.$ Management should focus on improving the effectiveness of warranty services and customer support systems to more elficiently handeretums and complaints, thereby reducing the associated costs.

B$.$ Given that scrap and rework costs consfitute a significant portion of total quality costs, management should focus on improving the efficiency of rework processes and implementing sustainable scrap management practices.

C$.$ Management of the company should increase investment in both preventive measures and appraisal activities to reduce intemal and extemal fature costs

D$.$ Management should prioritise addressing the single most important quality cost $-$ foregone contnbution from lost sales $-$ by increasing expenditure on sales and marketing to increase sales.