Question
Bath Products Ltd manufactures a variety of bath and beauty products for specialty stores. The company has recently introduced the concept of identifying cost of
Bath Products Ltd manufactures a variety of bath and beauty products for specialty stores. The company has recently introduced the concept of identifying cost of quality and has identified the following costs for the month: Rework time $12,000 Cost of defective products that cannot be reused $14,000 Laboratory testing for safety $18,000 Training of quality control supervisors $21,000 Customer complaints $11,600 Inspection of purchased ingredients $7,800 Product liability $1000 Sales Revenue for the month was $100,000. Required: 1. Prepare a cost of quality report for Bath Products Ltd. The report should include the following information: Classification of the above costs as internal failure, external failure, appraisal and prevention costs. (3 marks) Calculation of each cost with respect to percentage of sales. (3 marks) Calculation of each cost with respect to percentage of total quality costs. (3 marks) 2. Prepare a report for the management of Bath Products Ltd, commenting on the analysis in requirement (1) and providing suggestion for improvement. (
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started