Question
Classification of Cost of quality and determine the total amount on each category appropriately: Apex ltd has taken many proactive steps on quality improvements and
Classification of Cost of quality and determine the total amount on each category appropriately:
Apex ltd has taken many proactive steps on quality improvements and has the following activities compiled.
1. Expediting
2.Recalls
3. Line Inspection
4. Litigation costs
5. Reporting & recording of defects
6. Storing and disposing waste
7. Procedure verification
8. Training to employees
9. Product testing equipment
10. Warranty repairs
During the last quarter a company had a bad sales and it's budgeted results are as given below:
Product A: sales =2,50,000, PV ratio=50%
Product B: sales =4,00,000, PV ratio=40%
Product C: sales =6,00,000, PV ratio=30%
Overheads-fixed is 5,02,200
Director of the company wants to identify the cause and have a detailed statement of amount of loss and recommendation of sales in each of the products as well as in total sales while maintaining same level of sales mix which will ultimately results in eliminating the loss.
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To classify the cost of quality and determine the total amount for each category we can categorize the activities you mentioned into the following fou...Get Instant Access to Expert-Tailored Solutions
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