Question
Question No-1 Ventura Company; Quality Cost Report For Years 2017 and 2018 2017 2018 Amount Percentage Amount Percentage Prevention cost 650,000 1.30% 1,000,000 2.00% Appraisal
Question No-1
| Ventura Company; Quality Cost Report For Years 2017 and 2018 | ||||
|
| 2017 | 2018 | ||
|
| Amount | Percentage | Amount | Percentage |
| Prevention cost | 650,000 | 1.30% | 1,000,000 | 2.00% |
| Appraisal cost | 1,200,000 | 2.40% | 1,500,000 | 3.00% |
| Internal failure cost | 2,000,000 | 4.00% | 3,000,000 | 6.00% |
| External failure cost | 5,150,000 | 10.30% | 2,000,000 | 4.00% |
| Total Quality Costs | 9,000,000 | 18.00% | 7,500,000 | 15.00% |
| Sales | 50,000,000 |
| 50,000,000 |
|
a)Prepare a written evaluation report with graph (use percentage column in the graph) for the Ventura Company on the basis of following quality costs report. This evaluation should discuss the distribution of quality costs in the company, changes in the distribution over the last year, and any other information you believe would be useful to management.
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