Bagshaw plc is a major UK manufacturer and supplier of an extensive range of plastic products...

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Bagshaw plc is a major UK manufacturer and supplier of an extensive range of plastic products (containers, fastenings and frames) to range of customers and consumers worldwide. At the company's annual general meeting (AGM), the company CEO, Kyomi Fabrizi, proudly informed shareholders that. "Bagshaw plc is a market leader for industrial and commercial plastic products and our market strength continues to grow. Trading conditions have been difficult this year in many of our markets and, as a result, it has been a challenge maintaining levels of sales turnover. Throughout this challenging time, we have worked hard to maintain a quality and customer satisfaction focus, and this focus has enabled us to develop stronger customer relationships, especially in the Far East. At the same time as our quality focus, we continue to work to improve core cost efficiencies and to make overall cost savings. For these reasons, we are confident that the company will continue to provide increasing returns for our equity investors into the future." The following data was included in the company's financial reports: Quality Cost Accounting on Quality Analysis For the years ended 31st December Overhead cost item: Quality effectiveness audit Depreciation of test equipment Downtime Customer care (visits and communication) Process improvement operations Product scrap / loss/waste Staff (quality) training After sales service requirements In-process inspections Supplier relations (communications) Warranty repairs Reworking Sales turnover Quality analysis code 02 82998989889 01 03 02 01 03 01 04 01 01 04 03 2019 £000 500 400 450 800 500 250 900 350 250 200 2.50 150 5,000 £10.0m 2020 £000 200 400 700 350 150 600 350 500 150 100 650 350 4,500 £8.50m a. Define and briefly explain the meaning of the quality cost accounting analysis items included in the financial data table above. b. Discuss (with appropriate supporting calculations) the content of the CEO's statement in the light of the quality cost analysis included in the company's financial reports. Bagshaw plc is a major UK manufacturer and supplier of an extensive range of plastic products (containers, fastenings and frames) to range of customers and consumers worldwide. At the company's annual general meeting (AGM), the company CEO, Kyomi Fabrizi, proudly informed shareholders that. "Bagshaw plc is a market leader for industrial and commercial plastic products and our market strength continues to grow. Trading conditions have been difficult this year in many of our markets and, as a result, it has been a challenge maintaining levels of sales turnover. Throughout this challenging time, we have worked hard to maintain a quality and customer satisfaction focus, and this focus has enabled us to develop stronger customer relationships, especially in the Far East. At the same time as our quality focus, we continue to work to improve core cost efficiencies and to make overall cost savings. For these reasons, we are confident that the company will continue to provide increasing returns for our equity investors into the future." The following data was included in the company's financial reports: Quality Cost Accounting on Quality Analysis For the years ended 31st December Overhead cost item: Quality effectiveness audit Depreciation of test equipment Downtime Customer care (visits and communication) Process improvement operations Product scrap / loss/waste Staff (quality) training After sales service requirements In-process inspections Supplier relations (communications) Warranty repairs Reworking Sales turnover Quality analysis code 02 82998989889 01 03 02 01 03 01 04 01 01 04 03 2019 £000 500 400 450 800 500 250 900 350 250 200 2.50 150 5,000 £10.0m 2020 £000 200 400 700 350 150 600 350 500 150 100 650 350 4,500 £8.50m a. Define and briefly explain the meaning of the quality cost accounting analysis items included in the financial data table above. b. Discuss (with appropriate supporting calculations) the content of the CEO's statement in the light of the quality cost analysis included in the company's financial reports.

Answer rating: 100% (QA)

a The quality cost accounting analysis items included in the financial data table above are Quality analysis code This is a code used to identify the ... View the full answer