Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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... blur-text-image
Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting Tools for business decision making

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

6th Edition

978-0470477144, 1118096894, 9781118214657, 470477148, 111821465X, 978-1118096895

More Books

Students explore these related Accounting questions