Question
Desantis Pharmaceutical Company Inc. measures and communicates its cost of quality (COQ) monthly to stakeholders. The company calculates the cost of quality as the warranty
Desantis Pharmaceutical Company Inc. measures and communicates its cost of quality (COQ) monthly to stakeholders. The company calculates the cost of quality as the warranty cost divided total sales. Consequently, a lower percentage is preferred.
What is your opinion on the company's cost of quality calculation? What is good about it? What could be improved if anything?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
In assessing the cost of quality COQ as the warranty cost divided by total sales DeSantis Pharmaceutical Company Inc has taken a simplistic approach t...
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Step: 2
Step: 3
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Cost Management A Strategic Emphasis
Authors: Edward Blocher, David F. Stout, Paul Juras, Steven Smith
8th Edition
1259917029, 978-1259917028
