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Prepare a cost analysis that shows the actual prevention, appraisal, internal failure and external failure costs. Your statement should show each cost heading as a
Prepare a cost analysis that shows the actual prevention, appraisal, internal failure and external failure costs. Your statement should show each cost heading as a percentage (%) of turnover and clearly show the total cost of quality (including any opportunity costs). Explain why quality cost information is needed and how it is used .(10 marks)
Kenari Sdn. bhd. has incurred the following quality cost RM'000 320,000 5,000 8,950 9,561 Revenue Costs: Design engineering Warranty Estimated lost contribution from public knowledge of poor quality Training Process engineering Rework Customer support per repaired unit Product testing Transportation cost per repaired unit Inspection 560 3,450 7,545 645 65 546 13,800 Required: Prepare a cost analysis that shows the actual prevention, appraisal, internal failure and external failure costs. Your statement should show each cost heading as a percentage (%) of turnover and clearly show the total cost of quality (including any opportunity costs). Explain why quality cost information is needed and how it is used. (10 marks)Step by Step Solution
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