Question
b. Potato Factory is a reputed potato chips manufacturing company based in Berlin, Germany. The company routinely conducts product quality checks. A recent quality check
b. Potato Factory is a reputed potato chips manufacturing company based in Berlin, Germany. The company routinely conducts product quality checks. A recent quality check reveals that one batch of potato chips (amounting to $22,000) did not meet the quality standards. As a result, the whole batch of potato chips was discarded. The companys CEO commissioned an investigation to identify the causes of the incident, which found that some newly recruited workers were mainly responsible for the above quality issue. In this regard, the company has recently hired a consultant to receive advice about whether it should consider $22,000 as normal or abnormal spoilage, and how it should record this cost in its financial statements. Imagine yourself as the consultant and write down your responses to the company. [Maximum word limit: 390 words
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