Classification of items as per Cost of quality and determine the total amount on each category under
Question:
Classification of items as per Cost of quality and determine the total amount on each category under appropriate types:
Razor Ltdwants to improve its quality and has the following operating data for the current year,
(I) Litigation costs to defend the product defects=2,90,500
(II) Expediting=3,27,000
(III) Line Inspection=2,12,500
(IV) Recalls=3,42,000
(V) Warranty repairs=8,62,500
(VI) Storing and disposing waste=1,72,000
(VII) Reporting & recording of defective product=2,67,600
(VIII) Procedure verification=2,54,000
(IX) Training given to employees for improvement in standards=3,75,500
(X) Product testing equipment =4,15,800
The company in the past has suffered from poor brand image in the market.
Managerial Accounting
ISBN: 978-1259024900
9th canadian edition
Authors: Ray Garrison, Theresa Libby, Alan Webb